On the heels of its decision earlier this year to consolidate its Gulf of Mexico operations in Covington and close its main Lafayette office at 5750 Johnston St., potentially impacting hundreds of local jobs, Chevron confirmed Friday that it will trim up to 5,500 more workers from its payroll across the globe and slash its capital investment plan.
ABiz was unable to immediately determine how many jobs have been cut so far this year in the Lafayette/Acadiana region and how many are still employed by the company here.
News of the cuts comes as the company confirms low energy prices dealt a severe blow to its third quarter profit. The latest reductions are on top of the 1,500 job losses the energy giant announced earlier this year.
Chevron’s cuts are only the latest among widespread energy company downsizing amid what increasing appears to be a prolonged slump in oil and natural gas prices.
That total job loss number includes the 1,500 positions already trimmed from Chevron’s payroll, including 950 in Houston, spokesman Cam Van Ast said. Chevron has also cut jobs in the Marcellus Shale, where it has pared back drilling, and the North Sea. But other jobs may be lost as Chevron continues selling off assets that no longer fit into the company’s portfolio or strategy.
In addition to its in-house job cuts, Chevron plans to slash an equal number of contractors as it hustles to reduce costs and revamp its spending budget amid the worst industry downturn in years.
With crude and natural gas prices showing no signs of rebounding soon, Chevron plans to trim its capital and exploratory expenditures in 2016 by roughly 25 percent and will consider curtailing spending plans in 2017 and 2018 as well, depending on the market conditions.
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