BISMARCK, N.D. — MDU Resources Group Inc. has laid off seven employees in its Bismarck corporate office after the sale of its oil company.
MDU, a diversified natural resource company traded on the New York Stock Exchange, announced the sale of its Fidelity Exploration and Production properties in November to generate capital to fund investments at its other subsidiaries. The oil company made up one-third of the corporation’s earnings.
“Without those, we become smaller,” MDU Resources spokesman Rick Matteson told The Bismarck Tribune. The company is cutting costs until its other energy, transportation and construction business segments grow enough to make up for the loss, he said.
In addition to the layoffs, two other employees took voluntary retirement packages and 15 unfilled positions were eliminated from 160 total positions at the corporate office.
A second cost-cutting review is being conducted to identify duplicative operations among MDU’s subsidiaries, according to Matteson. The review is expected to be completed in January and could result in further layoffs.
MDU Resources is the parent company of Montana-Dakota Utilities, which provides natural gas and electricity to parts of the Dakotas, Montana and Wyoming.
Information from: Bismarck Tribune, http://www.bismarcktribune.com
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