Chevron to shed 1,500 jobs worldwide

OREANDA-NEWS. July 30, 2015. Chevron plans to cut 1,500 jobs worldwide as part of a drive to reduce costs, implying the US major doesn't expect the current market downturn to ebb anytime soon.

"In light of the current market environment, Chevron is taking action to reduce internal costs in multiple operating units and the corporate sector," the compnay said. "Efforts in our corporate center are targeting cost reductions of approximately \\$1bn."

The announcement marks a first from a US major in the current downturn. Oilfield services companies such as Schlumberger and Halliburton have so far been at the forefront of job cuts as crude prices began plummeting last year. But majors and large US independents have largely held on to their employees on grounds that it is difficult to rehire skilled workers once the market turns and companies get ready to ramp up operations.

The jobs cuts will be spread across 24 groups and largely focus on non-field work positions, it said. Of these, about 270 are existing vacant positions which will not be filled. In addition, the company will cut another 600 contract employees from these 24 groups.

Chevron had 64,715 employees as of 31 December, which included 3,259 working in service stations.

Chevron reports second quarter earnings on 31 July.