California Resources Corp. recently reduced the size of its leadership team as part of a functional realignment that the E&P company said focuses operations on efficiency and cost reductions.

In a Jan. 21 company release, California Resources said it had eliminated leadership positions in the areas of public affairs, exploration and development, investor relations and finance. The announcement follows the departure of Todd A. Stevens, who stepped down as the company’s president and CEO in late December.

“This streamlined leadership team is the first step in better positioning the company to focus on implementing additional cost reductions, maintaining our capital discipline and asset rationalization through our full-scale business review,” Interim CEO Mac McFarland said in a statement on Jan. 21.

Reporting to McFarland will be Francisco Leon (CFO), Mike Preston (chief administrative officer and general counsel), Shawn Kerns (executive vice president, operations and engineering) and Carlos Contreras (senior vice president of commercial).

The organizational changes, when fully implemented, are expected to reduce California Resources’ run rate costs by approximately $8 million per year representing a 22% reduction in senior leadership team costs, according to the company release.

Further, the company expects a one-time charge of approximately $5 million as a result of the changes.

“We will continue to maintain our focus on safe and environmentally responsible operations as we implement changes to the company’s organization and strategic direction,” McFarland added in his statement.

California Resources is a publicly traded oil and natural gas exploration and production company. The company is the largest oil and natural gas producer in the Golden State, according to its website.

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