California Resources Consolidates Leadership Team to Save $8 Million Annually

California Resources Corp. has reduced the size of its leadership team by eliminating positions in public affairs, exploration and development, investor relations and finance.Moving forward, the Santa Clarita oil and gas producer will realign those functions among existing executives, the company said.Chief Financial Officer Francisco Leon will take over the finance and investor relations duties while Shawn Kerns, executive vice president of operations and engineering, will be responsible for all aspects of operations and development. Chief Administrative Officer Mike Preston will handle legal, information technology, human resources and government and external affairs. Carlos Contreras, senior vice president, commercial, will lead the company’s marketing efforts. All four will report to interim Chief Executive Mac McFarland.The changes, when fully implemented, are expected to save California Resources about $8 million a year, representing a 22 percent decrease in senior leadership team costs, the company said.The streamlined leadership team is the first step to positioning the company to focus on additional cost reduction and maintain capital discipline, McFarland said.“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,” he said in a statement.The changes were announced Thursday. On Friday, shares of California Resources (CRC) closed unchanged at $24.72 on the New York Stock Exchange.