Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

Index Last Change % Change
Dow 23,273.96 -54.67 -0.23%
Nasdaq 6,586.83 -42.22 -0.64%
S&P 500 2,564.98 -10.23 -0.40%
Treasuries 2.38 -0.00 -0.21%
Data as of 8:24pm ET
Company Price Change % Change
General Electric Co 22.32 -1.51 -6.34%
Bank of America Corp... 27.16 -0.01 -0.04%
Advanced Micro Devic... 14.10 0.29 2.10%
Seagate Technology P... 39.35 4.41 12.62%
AT&T Inc 35.25 -0.29 -0.82%
Data as of 4:00pm ET
Sponsors

Sections

More than 5% of DACA recipients have started their own businesses since enrolling the program, according to a recent survey. More

Instead of raising money for the Red Cross or requesting help from the National Guard, dozens of grassroots operations have sprung up to help get aid and supplies to Puerto Rico any way they can. But it has not been easy. More

Becoming a flight attendant can mean traveling the world. But it's a tough gig to land. Delta is looking to hire 1,000 flight attendants to join its team. More