Chevron to eliminate up to 7,000 jobs

Chevron Corp. (NYSE: CVX) plans to eliminate 6,000 to 7,000 jobs as part of the company’s strategy for reducing costs for 2016.

“Third-quarter earnings were down substantially from a year ago,” said Chairman and CEO John Watson. “While downstream earnings remained strong, lower overall earnings reflected weaker market prices for both crude oil and natural gas, which depressed upstream profitability. We are focused on improving results by changing outcomes within our control. Operating and administrative expenses are 7% lower than last year, and we expect further reductions in the quarters ahead.  

“We expect capital and exploratory expenditures for 2016 to be $25–28 billion, roughly 25%  lower than this year’s budget,” Watson continued. “We expect further reductions in spending for 2017 and 2018, to the $20 to $24 billion range, depending on business conditions at the time. With the lower investment, we anticipate reducing our employee workforce by 6,000 to 7,000.

“We continue to make good progress on our asset sales program,” he added. “In the last two years, we’ve generated $11 billion in proceeds. We expect $5–10 billion in additional proceeds by the end of 2017.”

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