HOUSTON – Chevron Corp. is asking employees to reapply for positions as part of a “cost-cutting program expected to eliminate up to 15% of its workforce," according to Reuters.
Nearly 700 employees in Houston will be laid off starting Oct. 23, according to a notice Chevron sent to the state of Texas. The layoffs will affect workers at Chevron’s downtown offices: 1400 Smith, 1500 Louisiana, 1600 Smith and 2 Allen Center, according to the Houston Chronicle.
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According to Reuters, workers will receive “enhanced severance benefits and two-months to leave the company.” A spokeswoman said majority of employees not rehired will be terminated by the end of the year.
This summer, Chevron acquired Houston-based Noble Energy, and it is expected to make cuts and layoffs for redundant office positions.
In total, the company announced plans to lay off 6,000 workers globally this year.
As the No. 2 U.S. oil producer, Chevron has undergone changes to reduce costs and recover declining profits in response to the economic downturn of the COVID-19 pandemic that derailed the industry. Stay-at-home orders and a cutback of travel caused the demand for fuel to drop drastically and lowered the cost of gas nationwide.
Likewise, global energy companies are taking similar steps.
Shell revealed plans to lay off 9,000 workers over the next two years. While BP announced plans to cut up to 10,000 jobs globally by the end of the year. Exxon says its reviewing its layoffs by a county-by-country basis.