Oil major Chevron is planning to reduce its nearly 45,000-strong workforce by 10 to 15 per cent this year due to negative impacts of the coronavirus pandemic coupled with a sharp decline in oil and gas prices.
Chevron has already revealed how it plans to mitigate the effects of the current market environment.
Chevron’s actions include reducing its guidance for 2020 organic capital and exploratory spending by 20 per cent to $16 billion.
The company is also taking other actions to support its balance sheet. These actions include the suspension of its $5 billion annual share repurchase program after repurchasing $1.75 billion of shares during the first quarter.
In a statement sent to Offshore Energy, a spokesperson for Chevron said that the company is also streamlining its organizational structures to reflect the efficiencies and match projected activity levels.
The spokesperson explained: “The new organizational structures will, unfortunately, require approximately 10-15 per cent fewer positions across the enterprise”.
Regarding the impact, Chevron said that the reductions will vary across the company and that most of it will take place this year.
The spokesperson added: “This is a difficult decision, and we do not make it lightly.
“ In recognition of these extraordinary times, we have enhanced the resources available to those leaving Chevron to provide a stronger safety net as they transition out of the company”.