DALLAS (AP) – Chevron is cutting up to 7,000 jobs, or 11 percent of its workforce, the latest indication of the toll that low oil prices are taking on the industry.
The two biggest U.S. oil companies reported huge profits for the third quarter. Chevron Corp. said Friday that it earned $2 billion, and Exxon Mobil Corp. earned more than $4.2 billion.
But those profits are down sharply from a year ago. Chevron’s profit was 64 percent lower than last year’s third quarter; Exxon’s profit fell 47 percent, its worst third quarter since 2003.
Both companies are slashing costs to boost profits. Chevron plans to cut capital and exploratory spending next year by one-fourth, with further cuts in 2017 and 2018 depending on the oil industry’s condition then.
That will include cutting the workforce by 6,000 to 7,000 jobs and shedding a similar number of contract workers, said Chairman and CEO John Watson. Many of the layoffs will be in Australia, he said, and an unspecified number will be in the U.S. Chevron has 64,700 employees.