Supermajor Chevron has cut 655 upstream jobs from its Houston workforce, adding to the list of oil and gas companies that have been hit by the low oil prices.
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John Watson, from Chevron. |
“In light of the current market environment, Chevron continues to take action by revising organizational structures, increasing efficiencies and reducing expenses,” Chevron said in a statement. “As part of this, we have undertaken a previously announced workforce reduction across our upstream group.”
Affected employees will receive at least six weeks of transition pay, severance, and career transition services, Chevron said.
The 655 layoffs are part of the 4000 jobs that Chevron will cut in 2016, which CEO John Watson revealed in the company’s Q4 2015 investor call. In addition, Chevron’s workforce reductions between year-end 2014 and year-end 2015 were at 3200.
“We're pretty thoughtful about the way we do this sort of work to make sure that we keep the right people in our organization for the longer term, but the reality is activity is likely to be lower and we do have a number of projects that will be ramping down and that we're going to work to be fair about how we do that so that we keep a lot of the great talent that we have that's been working around the world,” Watson said in January.
In March, the US supermajor said it was set to cut its budget by some 36% by next year, with plans to spend US$17-$22 billion in 2017 and 2018, representing a 36% drop from 2016’s planned $26.6 billion.
Yesterday in the job cut arena, FMC Technologies confirmed to OE that 700 jobs would be cut from its Norway office in the coming months.
Earlier this week, both Murphy Oil and Freeport-McMoRan (FCX) made their own cuts. Murphy, although uncertain of the number of jobs it will cut, they will be made in all of its offices around the world. FCX announced four of its top executives at its subsidiary company Freeport-McMoRan Oil & Gas were terminated in an effort to reduce costs.
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