Chevron Layoffs 2020: 10% To 15% Of Workers Cut Amid Reduced Oil Demand

As oil and gas demand dropped as a result of the coronavirus pandemic, Chevron Corp. (CVX) is looking to make another round of job cuts.

The second-largest U.S. oil producer confirmed to Reuters that it will cut 10% to 15% of its 45,000 workers as it looks to reduce costs across the company.

The job cuts come as U.S. crude oil prices dropped to about $33 a barrel amid stay-at-home orders and reduced travel demand during the coronavirus pandemic.

Chevron previously revealed that it was cutting spending by 30% or $2 billion in 2020 as well as asking for voluntary layoffs as gas prices plummeted during the COVID-19 crisis.

Spokeswoman Veronica Flores-Paniagua told the news outlet that Chevron has plans to eliminate about 10% to 15% of its global staff to “match projected activity levels” and “address current market conditions.” About 4,500 to 6,750 workers are expected to be affected by the staff reductions.

Most of the job cuts will occur this year with severance pay, medical benefits subsidy, and education services provided to impacted employees, Reuters said.

Shares of Chevron stock were dowmn 2.06% as of 10:59 a.m. EDT on Thursday.