Chevron plans to cut 655 Houston jobs as part of a payroll decrease across its upstream business. The California-based company confirmed the layoffs Thursday.
Chevron previously stated it would cut its workforce by 4,000 this year. In 2015, The oil major reduced its workforce by 3,000. The total estimated cuts made up about 10 percent of the company’s workforce at the end of 2014.
“In light of the current market environment, Chevron continues to take action by revising organizational structures, increasing efficiencies and reducing expenses,” spokesman Cam Van Ast said in an email, confirming the layoffs.
The nation’s No. 2 oil producer said it will pay employees six weeks transition pay, severance and provide them career transition services. The workforce reduction coincides with a 24-percent drop in Chevron’s investment budget this year to $26.6 billion.
The Federal Reserve reports the U.S. oil industry lost about 70,000 jobs last year. The loss of energy jobs has so far cost the overall Texas economy approximately 250,000 jobs, according to a report by the Dallas Morning News.
Across the world, companies have cut more than 320,000 jobs since the economic downturn began, according to Houston financial consulting firm Graves & Co., which tracks industry reductions.