Chevron Corporation (NYSE:CVX) will be slashing up to 950 positions in the Houston area as it continues to relieve itself from the pressure that has come with the slump in oil prices. Job cuts in the Houston area are part of a larger plan that will see the company eliminate up to 1,500 jobs as the company accepts oil prices may not rebound any time soon.

Layoffs to Target Four Corporate Centers

Workers to be laid off are to be given a two months’ notice according to a statement from the company. The first batch is to leave in October. Chevron Corporation (NYSE:CVX) has already communicated the same to the Texas Workforce Commission as spokesman, Cam Van Ast insists they plan to finish issuing pink slips by the end of the year.

Chevron Corporation (NYSE:CVX) has not stated the positions it will be targeting with upcoming layoffs but has told state regulators that most of them will target positions on its four corporate centers in downtown. The proposed 950 layoffs represent a 12% of the company’s total workforce in the Houston area.

Chevron Corporation (NYSE:CVX) is essentially bracing itself for the expected adverse effects of a prolonged slump in oil prices that continues to force many oil majors to adopt stringent cost cut measures. The downturn in the oil sector saw the company post a 90% slip in second quarter profits as an increase of supply continues to outweigh demand.

Cost Cut Measures

During the recent conference call, Chevron Corporation (NYSE:CVX) announced plans to reduce operating costs in multiple units of operation as well as in its corporate structure. The ongoing initiatives seek to improve efficiency, reduce costs, as well as ensure core business operations are given the much-needed resources and attention. The slump in oil prices has for the first time seen the flurry of layoffs extend to corporate offices.

Chevron Corporation (NYSE:CVX) was forced to cut its second quarter capital spending that came in at $8.7 billion compared to $10.2 billion used for the same period last year. Cost cuts have become the order of the day as companies try to make good use of their already suppressed cash balances.

Source: www.wsobserver.com

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