Chevron Corp is to cut 10 to 15 per cent of its worldwide workforce as part of restructuring by the second-largest US oil producer.
The company previously disclosed a 30 per cent reduction in its 2020 spending and voluntary job cuts amid this year’s plunge in oil prices and lower demand for oil and gas due to the virus pandemic.
Chevron was among the first to make significant budget cuts as oil demand plummeted. The company, which has 45,000 employees, expects to remove about 10 to 15 per cent of its global staff to “match projected activity levels”, a spokeswoman confirmed.
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The 4,500 to 6,750 job cuts are to “address current market conditions” with different impacts on each business unit and region. Most reductions will take place this year.
US crude oil prices have nearly halved this year to about $33 a barrel as the pandemic hurt travel demand and led to stay-at-home orders. Oil demand has been hit by as much as two million barrels per day.
Chevron said it would reduce planned US shale output by about 125,000 bpd.
On Wednesday, top US oil producer Exxon Mobil Corp said it had not yet taken steps to reduce its workforce. Exxon also cut its planned spending 30 per cent for the year.
Last year, Chevron left a takeover bid for Anadarko Petroleum Corp rather than get into a bidding war with Occidental Petroleum Corp. Chevron received a $1 billion break fee.