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Page added on November 1, 2015
Chevron Announces Big Job Cuts
Oil giant Chevron Corp. announced Friday that it was planning to cut 6,000 to 7,000 jobs as the company sees it profits decline for the fourth consecutive quarter. The global oil-market is currently experiencing its worst price slump since the 1980s, Bloomberg reported.
The job cut announcement came along with third-quarter net income reports. Chevron reported a fall to $2.04 billion from $5.59 billion compared to a year ago. The company’s revenue fell by 37 percent to $34.32 billion.
Global oil prices in June 2014 were over $100 a barrel but have since fallen and continue to hover below $50 a barrel. The price average from July to September was $51.30 for a barrel. The global oil market has been inundated with an increase in supplies from the U.S. and Persian Gulf.
Chevron said it would trim its capital spending by 25 percent next year, the Wall Street Journal reported. Capital spending was expected to be between $26 billion and $28 billion in 2016 with plans to cut spending to between $20 billion to $24 billion in 2017 and 2018.
The third-quarter results reported Friday fell less than expected by investors and were aided by a 15 percent cut in capital spending.
Despite the drop in oil prices, Chevron’s CEO John Watson has said he would stick to plans to increase production by 20 percent by the end of 2017. Even with the current downturn, Watson said Chevron would continue paying dividends to its investors.
The decrease in global oil prices has hit Chevron and other oil companies. Bloomberg reported that for every $1 decline in average quarterly crude prices, Chevron’s cash flow was hit with declines of approximately $325 million to $350 million.
Rival oil giant Exxon Mobil Corp. also reported decreased revenue and profit in the third quarter. Profit was down to $4.24 billion from $8.07 billion a year earlier.
There was no information on when or in what divisions the job cuts would take place at Chevron. As of 2014, Chevron had 64,700 employees, the Wall Street Journal reported.
11 Comments on "Chevron Announces Big Job Cuts"
makati1 on Sun, 1st Nov 2015 7:33 pm
The cuts are everywhere these days.
October on Rice Farmer:
Maersk Oil personnel cut 20%
Monsanto 90
Cummings 2,000
Devon Energy 15% of Canadian staff
Meggitt Plc 300
Baxter 1,400
Chevron 6,000-7,000
Unicredit 12,000
Husky Energy 1.400
Etc.
Replaced by burger flipping at minimum wage or nothing. The ‘great leveling’ continues.
BC on Sun, 1st Nov 2015 7:50 pm
Growth of the globalized mass-consumer economy is over: LTG and EOG.
https://www.businesscycle.com/ecri-news-events/news-details/economic-cycle-research-ecri-flagging-family-fortunes
https://www.businesscycle.com/ecri-news-events/news-details/economic-cycle-research-ecri-key-measure-of-cyclical-growth-is-weakening
https://www.businesscycle.com/ecri-news-events/news-details/economic-cycle-research-ecri-pursuing-the-purple-squirrel-1
https://www.businesscycle.com/ecri-news-events/news-details/economic-cycle-research-ecri-second-half-capitulation
https://www.businesscycle.com/ecri-news-events/news-details/economic-cycle-research-ecri-double-digit-imported-deflation
https://www.businesscycle.com/ecri-news-events/news-details/economic-cycle-research-ecri-cheap-labor
https://www.businesscycle.com/ecri-news-events/news-details/economic-cycle-research-ecri-a-shrinking-trade-pie
Boat on Sun, 1st Nov 2015 8:18 pm
Iraq oil is hiring. Bring your own gun and vest.
apneaman on Sun, 1st Nov 2015 9:25 pm
Apocalypse now: has the next giant financial crash already begun?
http://www.theguardian.com/commentisfree/2015/nov/01/financial-armageddon-crash-warning-signs
shortonoil on Mon, 2nd Nov 2015 6:42 am
“Apocalypse now: has the next giant financial crash already begun?”
With 38% of the world’s economy getting ready to disappear, it seems the answer to that would be yes:
http://www.thehillsgroup.org/depletion2_022.htm
http://www.thehillsgroup.org/
paulo1 on Mon, 2nd Nov 2015 8:37 am
And Jeb Bush says he has a plan, if only people would ask, of just how he would restore year on year growth to 4%. Boy, are people going to be surprised.
Kenz300 on Mon, 2nd Nov 2015 9:13 am
Funding deniers has gone too far…..
Climate Change is real….. we will all be impacted by it……
Exxon’s Climate Change Cover-Up Is ‘Unparalleled Evil,’ Says Activist
http://www.huffingtonpost.com/entry/exxon-evil-bill-mckibben_561e7362e4b028dd7ea5f45f?utm_hp_ref=green&ir=Green§ion=green
———–
Oil and Gas Companies Make Statement in Support of U.N. Climate Goals – The New York Times
http://www.nytimes.com/2015/10/17/business/energy-environment/oil-companies-climate-change-un.html?&moduleDetail=section-news-2&action=click&contentCollection=International%20Business®ion=Footer&module=MoreInSection&version=WhatsNext&contentID=WhatsNext&pgtype=article
Dredd on Mon, 2nd Nov 2015 11:26 am
They will probably use it as an excuse to continue to do nothing about approaching problems along the gulf (The Extinction of Houston).
Cloud9 on Mon, 2nd Nov 2015 12:13 pm
Of course climate change is real we have had global warming and global cooling since this blue ball has been in orbit. And of course humans are impacting the climate. Now, who’s industry are you going to shut down to reverse the trend? Which workforce will you put out to pasture? Oh, I know. The U.S.
BC on Mon, 2nd Nov 2015 4:08 pm
paulo, Jeb the Bushman is smoking some good Rastaman ganja, mon.
4% real GDP at a labor force growth of ~0% would require an acceleration of real productivity with reported inflation and a deflator of 0-0.8% from a secular rate of less than 1% today to 3.2-4%.
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=2ocI
At the current labor share of GDP, that would require a 9-10% acceleration in real labor productivity.
https://www.youtube.com/watch?v=CWxgfTMLtc0
https://www.youtube.com/watch?v=4CUxCpcayKo
To believe that, one would have to be cruisin’ the Left Coast with one’s reasoning capacity up in smoke, ma-a-a-an. 😀
Then again, now that the US is becoming increasingly a ganja and pharmacologically-induced nation, who knows what we will be persuaded to believe in the future.
BC on Mon, 2nd Nov 2015 4:22 pm
@short: With 38% of the world’s economy getting ready to disappear, it seems the answer to that would be yes
http://www.cmegroup.com/education/featured-reports/super-contango-and-the-bottom-in-oil-prices.html
http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html
Yes, and combine that with ~70-75% of world real GDP per capita at ~0% since 2007-08 and growth of world trade at 0%, and we’re already experiencing LTG/EOG at a 5- and 10-year average price of oil of $95-$100, which is unprofitable for shale and tar producers to extract at today’s price (and speculators and eCONomists wonder why oil is in “super-contango” :-D) and too costly for real GDP per capita to accelerate from 0%.