Chevron cut 700 oil exploration-and-production jobs in Houston, Texas, as part from the massive cost reduction program. The company implement this latest round of layoffs because of record low crude oil prices and volatility of the oil market. The company will release 655 workers from the plants and facilities in Houston, which is more than 8% from the workforce of the company in the state. The cuts target the company’s four offices in downtown Houston and likely affect many high-salaried employees there. The company did not disclose which positions were affected, but engineers, geologists, project managers, researchers and executives occupy those buildings. Chevron has plans to cut totally 4000 jobs during the year, which combined with last year redundancies makes 7000 layoffs, or decrease of 10% from the staff. The company will provide affected employees with at least six weeks of transition pay, severance and other career transition services.
“In light of the current market environment, Chevron continues to take action by revising organizational structures, increasing efficiency and reducing expenses. As part of this, we have undertaken a previously announced workforce reduction across our Upstream group. In Houston, this will result in a reduction of approximately 655 positions in 2016. We are sensitive to the concerns of impacted employees, we are providing them a minimum of six weeks transition pay, severance and career transition services”, said the official statement of Chevron.
Chevron first disclosed its overall plans to cut thousands of jobs in October. In the company’s fourth-quarter 2015 earnings call in January, Chairman and CEO John Watson provided more specific figures.