A surplus in supplies in a global economy still working to recover from the last fiscal crises has pushed crude oil prices down by about half from last year’s levels. “These initiatives, which are now underway, are focused on increasing efficiency, reducing costs and focusing on work that directly supports business priorities”, read the statement.
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“In order to meet cost-reduction targets, there will be a reduction of approximately 1,500 employee positions across the 24 groups which comprise the corporate center”, Chevron spokeswoman Melissa Ritchie said in an emailed statement.
The cuts are not limited to the United States.
Of the 1,500 jobs being eliminated, 270 are now empty and will not be filled, Chevron said.
Chevron had previously labeled the Permian as one of its premium assets. Earlier this year, Chevron had canceled its exploration projects in Romania due to crashing oil prices and heated protests.
The company’s 2Q 2015 earnings will be released later this week (31 July). “Additional cost savings are expected to be achieved across the enterprise”.
Chevron is not the only company that is cutting back.
As a result of the cost reduction efforts at the corporate centre, around 950 positions will be cut in Houston.
Chevron moved its worldwide headquarters to San Ramon in 2003.
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Oilfield service companies are also letting go of employees in the thousands. Schlumberger reduced its headcount by about 11,000 employees in first-quarter 2015.
