Oil companies just can’t catch a break this year.
On Friday, Chevron announced that it expects to cut between 6,000 and 7,000 jobs this year. That’s about 11% of its total workforce of 64,700.
Chevron’s profits took a dramatic hit — down 64% from a year ago.
It’s a crummy time to be in the oil business, with prices hovering around $45 a barrel, about half of where they were at last year.
Another oil giant, Exxon, also got clobbered, reporting Friday that profits fell 47% from a year ago. Earlier this week, ConocoPhillips swung to a loss of $466 million, compared to a profit $1.6 billion last year.
Oil workers are getting hurt — arguably the most — from the drop in oil prices. There’s also no end in sight. The global economic slowdown and oversupply of oil have kept down oil prices.
Chevron’s job cuts are only the latest in a slew of layoffs since last year.
In late July, Exxon said it would cut 1,500 jobs this year. And ConocoPhillips said in September it would cut 10% of its workforce this year.
Since June 2014 — and including Chevron’s job cuts today — there have been nearly 100,000 job cuts related to the drop in oil prices, according to outplacement firm Challenger, Gray & Christmas.
