Current gas prices are shown at a Chevron gas station in Encinitas, California October 10, 2014. Oil prices are hovering just above $90 per barrel, a level last seen in June 2012, putting a strong spotlight on OPEC producing countries. They face calls to
Current gas prices are shown at a Chevron gas station in Encinitas, California October 10, 2014. Reuters/Mike Blake

US Energy ace Chevron Corp has announced cutting 10 percent of its workforce to make up for the shortages it faced due to the constant decrease in the oil prices.

So far as the oil sector is concerned, companies have cut around 87,000 jobs in 2015 till date, The Guardian reports. Chevron is the latest in the list of companies planning to the cut jobs in the coming days or months. The US energy company has already laid off some employees on Friday while making an announcement to cut around 6,000 to 7,000 jobs this year. This is the second time since July that the company has laid off thousands of its employees.

Chief Executive Officer John Watson provided a modest view of the overall progress and plans of the company depending upon the constant decline in the oil prices. Over 55 percent price decline has been recorded since 2014, prompting the producers and suppliers of the energy industry to take stricter actions.

The company has decided to make less expenditure in Australia, the US, Gulf of Mexico and Angola, thereby cutting its budget by 25 percent in 2016, Reuters reports. “We need to be more efficient at what we do,” Watson said in a conference call with investors and analysts. He said that the company is planning to cut investment to one-fourth. “With the lower investment, we anticipate reducing our employee workforce by 6,000-7,000,” he added.

Chevron released its third quarter report on Oct. 30, which witnessed a severe drop in the performance of the energy industry giant. Cost cuts and strong refining margins were the factors behind the company’s better than expected performance.

Watson claimed that the company was looking for best practices to be implemented to make sure LNG projects in Australia were implemented well, The Sydney Morning Herald reports. “We’re still targeting the first LNG cargo by year-end 2016. However, we continue to work to mitigate Wheatstone schedule pressures from previous delays to module delivery,” he stated.

Contact the writer at feedback@ibtimes.com.au, or let us know what you think below.

RELATED STORIES