Vital Energy, Inc. implemented a reduction in its combined employee and contractor headcount by approximately 10% in June 2025. This strategic move is part of the company's broader initiative to optimize its cost structure and enhance operational efficiency.
The headcount reduction is expected to result in sustainably lower General and Administrative (G&A) expenses for the company. Management anticipates total G&A for both the third and fourth quarters of 2025 to decline approximately 12% from the second quarter of 2025, reaching a projected range of $20.0-$22.0 million.
This action aligns with Vital Energy's pivot from an acquisition-led growth strategy to a focus on asset optimization and financial discipline. The company aims to translate these cost savings into improved profitability and stronger free cash flow generation.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.