Chevron flags possible job cuts in US$3 billion cost plan

CHEVRON indicated potential US job cuts as part of a new cost-cutting plan.

The US$3 billion in targeted “structural” cost savings will come from asset sales, the use of new technology and workflow changes, chief executive officer Mike Wirth said. Chevron recently opened up a US$1 billion innovation hub in Bengaluru, India, which is hiring workers for engineering and digital services.

“We are going to change where and how we do some of our work,” Wirth said in response to a question about workforce reductions. “The centre in India is an example of that. That does have implications on people because we are changing how work is done and where work is done.”

Wirth said it was “premature” to discuss specifics.

“Don’t read the intent of continuing to become more cost-efficient, which is inherent in a commodity business and something you can never step away from, as only being about jobs,” he said. “It’s about much, much more than that. And jobs are a small part of the total.” BLOOMBERG