In an effort to cut costs Chevron is now asking workers to reapply for their positions. According to Reuters this cost-cutting effort is expected to result in 15% of Chevron employees losing their jobs. Chevron, the 2nd largest oil producer in the United States, is attempting to reduce spending after taking major losses during the pandemic. The Coronavirus has caused companies in almost every industry to take cost cutting into consideration. CNBC reported yesterday that there is pressure on Disney to cut its $3 billion annual dividend. AT&T has expressed a stated goal of $10 billion dollars in spending cuts and has already announced they will be cutting some healthcare benefits. But of all the economic sectors the pandemic has affected, the most influenced may have been the Oil and Gas industry. In the past few months we have seen Chevron’s biggest competitor, ExxonMobil, suspend its 401(k) matching program and institute a “Performance Improvement Plan” which many people have perceived as a roundabout way of laying off employees. Shell Oil & BP have also announced they will be conducting major job cuts.
Now Chevron has decided to conduct its own cost-cutting measure program through a reapplication process. Michael Wirth, Chevron Chief Executive, stated on Monday that employees who have not been chosen for jobs will be notified within a few weeks. It is unclear at this time how many employees were asked to reapply and how many of those applications will be accepted. One Chevron spokesperson said that employees not selected for employment will leave the company by the end of the year.
Chevron has already declared that 700 employees in the Houston area will be laid off starting on October 23rd. According to a notice Chevron sent to the state of Texas, the employees will be given enhanced severance benefits and a two month window to leave the company.
Chevron also acquired a company called Noble Energy, which employees around 2,200 people. According to Michael Wirth there will likely be employee reductions in areas that the two companies overlap. Decisions on these reductions are likely to come in the next few weeks.
- Kumar, Jennifer Hiller, Devika Krishna. “Exclusive: Chevron Workers Face Demands to Reapply for Jobs under Global Restructuring – Sources | Reuters.” IN, Reuters, 8 Oct. 2020, https://in.reuters.com/article/chevron-layoffs/exclusive-chevron-workers-face-demands-to-reapply-for-jobs-under-global-restructuring-sources-idUSKBN26T0BN.
- “The Retirement/Transition Guide for Chevron Employees.” The Retirement Group, The Retirement Group, 11 Aug. 2020, https://energy.theretirementgroup.com/chevron-guide-download-google
- Sherman, Alex. “Dan Loeb Calls on Disney to Suspend Dividend, Invest It in Disney Plus.” CNBC, CNBC, 7 Oct. 2020, https://www.cnbc.com/2020/10/07/dan-loeb-calls-on-disney-to-suspend-dividend-invest-it-in-disney-plus.html
- Khan, Shariq. “Exclusive: Chevron to Cut up to 15% of Staff amid Restructuring – Reuters.” U.S., Reuters, 27 May 2020,