Chevron’s Layoff Announcement in December: 122 More Job Cuts to Take Place in Bakersfield
Chevron Corporation (NYSE:CVX) is sending hundreds of employees into Christmas either without jobs or with the possibility that their jobs may be cut in 2018. The Chevron layoffs are part of a restructuring process as the oil company finds a way to adapt to the dramatic reduction in crude oil prices. These cuts will be California layoffs, affecting multiple sites in the state. The Chevron job cuts in 2018 will be staggered throughout the year. These cuts are not unique in that many businesses in the industry are struggling with the current price of oil being so low, leading to many oil company layoffs in 2017.
The Chevron layoffs in 2018 were first announced in November, where it was said that 300, or about 26% of the total workforce in California, will be cut from the company throughout 2018, with the first round occurring in January.
Chevron is the largest gas producer in California and its layoffs will take place in the San Joaquin Business Unit, which is headquartered in Bakersfield.
More Chevron job cuts in 2018 were announced this week, with 122 employees being given notice that their positions will be slashed next year. Dozens of Chevron layoffs are still set to come in 2018, as the company has yet to announce all of its 300 planned cuts.
The Chevron layoffs in Bakersfield come as part of the restructuring process that first began in January 2017.
The company had about 1,500 workers in the San Joaquin unit in 2015, but that number has fallen since. The company has yet to release the exact number of employees.
Chevron’s Layoff Announcement in November: 100 Job Cuts to Take Place in January 2018
The dramatic fall in crude oil prices, which declined by nearly half since 2014, has put Chevron on the backfoot for years now. The oil company layoffs come due to the business trying to contend with a much thinner profit margin from its product.
The company posted a $497.0-million loss in 2016, compared to $4.6-billion in earnings the previous year. This steep decline prompted the Chevron layoffs.
While Chevron announced the layoffs in 2017, much of the most recent round will take place in 2018.
Aside from the December release concerning the 122 job cuts, the company also announced 100 layoffs in November that were to take place throughout 2018, the earliest of which will occur in January.
“In October 2017, Chevron’s San Joaquin Valley Business Unit (SJVBU) announced a new organizational model that will result in a 26% reduction in employees who are based in SJVBU. The reduction applies across all SJVBU field and office locations, including the filed and office locations in Kern County, Fresno County and Monterey County. The position reductions will occur in a phased approach between now and the end of 2018,” the company said in a statement.
“Chevron layoffs affect more than 100 employees,” 23ABC News, December 11, 2017.
“Chevron announces it will cut its local workforce by 26 percent,” Bakersfield Californian, October 18, 2017.