EXCLUSIVE: Anadarko Plans To Cut 1,200 Jobs, Release 95% Of Contractors

Anadarko Petroleum Corporation APC has let go of "95 percent" of its contractors and will lay off 1,200-1,500 employees next week, a source familiar with the matter told Benzinga on Thursday morning.

The company had 5,800 employees as of December 31, 2015, according to a 10-K filing.

Oppenheimer analyst Fadel Ghelt told Benzinga he "was not the least bit surprised" by the news.

Related Link: Investors Are Bullish On Anadarko Petroleum Following 2016 Capital Program

The company announced in its Q4 results February 1 that it would cut capital spending by nearly half in 2016. The company on March 1 detailed a plan to sell $3 billion in assets, sending the stock price up 5 percent.

Anadarko's trimming comes as oil producers in the U.S. face pressure from high oil supply and bottomed-out prices. There were nearly 800 fewer active drilling rigs in February 2016 than February 2015, according to the latest Baker Hughes data.

Requests for comment to Anadarko were not immediately returned.