Of the 1,500 worldwide employees slated for layoff, 950 are for the Houston operation. The first group is set to leave in October. Chevron has already communicated the same to the Texas Workforce Commission as spokesman, Cam Van Ast said they plan to finish issuing pink slips by the end of the year.
Chevron has not stated the positions it will be targeting with upcoming layoffs but has told state regulators that most will target positions on its four corporate centers in downtown Houston.
Chevron is bracing itself for the adverse effects of a low oil price environment that continues to force many oil majors to adopt cost cut measures. The downturn in the oil sector saw the company post a 90% decrease in second quarter profits.
Chevron announced plans to reduce operating costs in multiple operation units as well as in its corporate structure. The plan for the company is to improve efficiency, reduce costs, as well as ensure core business operations are given the resources. The slump in oil prices has for the first time seen the layoffs extend to corporate offices.