Chevron is asking its employees to reapply for jobs as a part of efforts to reduce the company’s headcount by up to 15 per cent of its 50,000 workforce globally, a report showed. Citing unnamed sources in the know, the report by Reuters noted that the move is part of efforts to reduce the supermajor said in May it planned to reduce the number of its employees by 10 to 15 percent following the oil price collapse amid the pandemic.
Chevron said in a statement: “This is a difficult decision, and we do not make it lightly. The company employed nearly 50,000 as of the end of 2019. “As of October 2020, this was down to 45,000. It is unclear how the job cuts will affect each location and business segment.”
Chevron’s workforce recently increased again, after its acquisitionofNobleEnergy, with a headcount of 2,200. The biggest deal in oil and gas since the start of the pandemic was worth $4.1 billion in an all-stock transaction. Chevron reported a net loss of $8.3 billion for the second quarter of the year, after booking massive impairment charges caused by the industry and pandemic crisis.
The net loss includes impairments and other net charges of US$1.8 billion, mostly associated with downward revisions to Chevron’s commodity price outlook, which the company made in view of the demand collapse and uncertainties over the economic recovery.