US-based Chevron is cutting 1500 employees in its attempt to slash costs by US$1 billion, with Houston employees getting the majority of the job cuts.
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Chevron's Big Foot has seen delays this quarter. Image from Chevron. |
The layoffs are currently underway and are set to be complete by November.
"In light of the current market environment, Chevron is taking action to reduce internal costs in multiple operating units and the corporate center," Melissa Ritchie, Chevron spokesperson, tells OE. "These initiatives, which are currently underway, are focused on increasing efficiency, reducing costs and focusing on work that directly supports business priorities. Efforts in our corporate center are targeting cost reductions of approximately $1 billion. Additional cost savings are expected to be achieved across the enterprise."
Houston will see 63% of the cuts at 950 jobs, the company's headquarters in San Ramon, California will lose 500 jobs, and 50 international jobs will be affected.
There will be a reduction of approximately 1500 employee positions across the 24 groups which comprise the corporate center. Out of the 1500 total, 270 of them are existing vacancies, which will not be filled. In addition, Chevron will eliminate 600 staff augmentation contractors from the 24 groups in the corporate center, Ritchie said.
So far in 2Q 2015, Chevron sold its Vietnam assets including acreage off the country’s continental shelf and an offshore pipeline project to PetroVietnam in June. Its Gulf of Mexico Big Foot project has been delayed, and the company ended its contract early for a semisubmersible off Australia with Atwood Oceanics.
The company’s 2Q 2015 earnings will be released later this week (31 July).
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