Chevron to cut 2,000 jobs

By Chavon Sutton, staff reporter


NEW YORK (CNNMoney.com) -- Chevron Corp., the second largest U.S. oil company, announced on Tuesday that it would cut 2,000 jobs this year amid challenging market conditions.

The company said the cuts come as a part of its plans to boost earnings by lowering costs, exiting unprofitable markets, and streamlining its business.

"Market conditions are likely to be difficult for the next several years," said Mike Wirth, executive vice president of Chevron's Global Downstream division in a statement.

Lloyd Avram, a Chevron (CVX, Fortune 500) spokesman, told CNN that the cuts will come from areas including refining and marketing, and are a part of a larger restructuring effort.

Avram anticipates the new organizational structure will be in place by the third quarter.

The announcement comes as Chevron and its competitors face a tough economic environment, with lower oil prices and relatively low demand.

In January, Chevron reported fourth quarter earnings of $3.07 billion, which were down 39% from the prior year period.

The company said it plans to concentrate on its North American and Asia-Pacific markets, where it says it has a competitive advantage.

It also said that even after eliminating 2,000 positions in 2010, it will continue to cut jobs through 2011.

Chevron expects to take a first quarter charge of $150 million to $200 million in order to pay out severance packages.

--additional reporting by Mythili Rao. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,232.02 -53.72 -0.29%
Nasdaq 5,089.36 -1.43 -0.03%
S&P 500 2,126.06 -4.76 -0.22%
Treasuries 2.22 0.03 1.37%
Data as of 3:49am ET
Company Price Change % Change
Bank of America Corp... 16.75 0.02 0.12%
Apple Inc 132.54 1.15 0.88%
Hewlett-Packard Co 34.76 0.93 2.75%
AT&T Inc 34.71 -0.36 -1.03%
Microsoft Corp 46.90 -0.52 -1.10%
Data as of May 22
Sponsors

Sections

The record airbag recall and the GM ignition switch recalls has resulted in a huge percentage of cars on the road today having been recalled. More

The True Cost, a new documentary, chronicles the evils of the clothing industry and asks us to stop buying so much cheap stuff More

Sarah Kauss launched S'well to rid the world of plastic water bottles. In five years, she's sold 4 million of her stainless steel bottles. More