(1) – Occidental Petroleum Corp (OXY.N) is offering its staff voluntary buyouts over the following two weeks, in accordance with a document seen by 1 on Tuesday, citing the sharp decline in oil costs and the coronavirus pandemic for “extreme dislocations” in its enterprise.

FILE PHOTO: The brand of Occidental Petroleum is displayed on a display screen on the ground on the New York Inventory Change (NYSE) in New York, U.S., April 30, 2019. REUTERS/Brendan McDermid

Occidental guess closely on the continued development in U.S. shale oil, taking up heavy money owed for its controversial buy of Anadarko Petroleum final 12 months for $38 billion. That guess has proved ill-timed following the coronavirus outbreak, which has minimize gasoline demand worldwide by about 30% and is accountable for the worst oil-and-gas-industry downturn in 40 years.

Power firms worldwide, together with Exxon Mobil Corp (XOM.N) and Royal Dutch Shell PLC (RDSa.L), have slashed capital expenditures and oil output to reckon with the pandemic.

Houston-based Occidental final week posted a $2 billion quarterly loss and has slashed capital spending drastically to shore up its steadiness sheet. The corporate mentioned that if spending cuts usually are not met, it is going to have “critical potential penalties” to the corporate, the document mentioned.

staff can submit a resignation supply to Occidental by means of Could 26, specifying the variety of months of base wage that they’ll settle for for voluntary separation, in accordance with the document. Staff can amend or withdraw affords until the corporate has already accepted them by then, the document mentioned. Provides not accepted will expire routinely on June 12.

Occidental declined to remark.

The corporate’s shares are down 64% on the 12 months, making it one of many worst-performing shares within the Normal & Poor’s 500 inventory index .SPX.

Occidental has been chopping bills to take care of its debt-laden steadiness sheet and had been shedding employees and promoting belongings to pare down debt even earlier than the autumn in oil costs.

The corporate mentioned final week it’s contemplating elevating new money, swapping debt for inventory or refinancing current debt attributable to shrinking oil demand. It withdrew its outlook for 2020.

It minimize its 2020 capex price range on three separate events this 12 months, most just lately to $2.5 billion from an unique plan of $5.three billion.

Reporting by Devika Krishna Kumar in New York and extra reporting by Shariq Khan in Bangalore; Writing by David Gaffen; Enhancing by Sandra Maler and Leslie Adler