Chevron to Cut 500 Jobs from Corporate Office, 1500 Company- Wide

July 30, 2015 13:12 pm · 38 comments

Roughly 500 people working out of Chevron’s corporate offices in
San Ramon will be losing their jobs, a spokeswoman for the oil giant said
today.

The job reductions are part of a $1 billion cost-savings effort
for the company, Chevron spokesperson Melissa Ritchie said.

“These initiatives, which are currently underway, are focused on increasing efficiency, reducing costs and focusing on work that directly supports business priorities,” Ritchie said.

The company plans to shed 1,500 jobs overall, with 950 positions
eliminated from its Houston office and 50 from international offices, Ritchie
said.

There are roughly 270 currently vacant positions spread out across all of its corporate offices that won’t be filled, Ritchie said, but she said she didn’t have a breakdown of exactly where those vacant positions are
located.

In addition, Ritchie said the company is cutting 600 contractors who help augment the corporate staff.

At the company’s annual stockholder’s meeting in May, Chevron board chairman and CEO John Watson said the company has the “financial strength to meet the challenges of a volatile crude price environment.”

“We’re reducing capital spending, we have implemented significant cost-reduction programs and have further streamlined our portfolio as planned.”

Don July 30, 2015 at 1:27 PM

I see a gas price hike coming from Chevron…… They are going to be down 1,500 employees so they will not be able to keep up with business demands so here is another gas corporation BS reason for a price increase to help offset the lack of corporate employee production.

The Mamba July 30, 2015 at 1:47 PM

Chevron has set records for years for corporate profit, now they are slashing jobs because of price weakness instead of riding it out. Typical corporate BS.

Dwight Schrute July 30, 2015 at 1:47 PM

Don…I am sorry but you are a buffoon.

Chevron does not make the majority of their $ from gas sales, but this is what the customer sees…the majority of these “cuts” are from open positions that will remain unfilled.

Pleas be sure to put the cork back onto your fork before eating dinner tonight.

Thank you

Tommy O' July 30, 2015 at 1:48 PM

At the company’s annual stockholder’s meeting in May, Chevron board chairman and CEO John Watson said the company has the “financial strength to meet the challenges of a volatile crude price environment.”

But firing 1,500 workers because you’re butt hurt about the “crude price environment” is nothing but a temper tantrum, John Watson.

I’m sure you won’t notice my personal boycott, Watson, but if nobody in central Contra Costa County buys from Chevron-branded stations, then ?…

Ken W July 30, 2015 at 1:51 PM

And this as the LA Times reports that CA oil companies doubled their profits in 2015 relative to the past 15 years. I smell a rat.

oldman July 30, 2015 at 1:53 PM

@Don
Yeah, that’s right, that’s right Don

typical claycordian July 30, 2015 at 1:58 PM

Thanks Obama

J. July 30, 2015 at 2:00 PM

Gas prices are going to crash this Fall when all the Iranian oil floods the market and Chevron is going to go down the crapper.

no handle July 30, 2015 at 2:01 PM

Buy ARCO gas and save yourself a bunch of money.

Cowellian July 30, 2015 at 2:28 PM

Californians have chosen to allow themselves to be held hostage by a handful of oil companies by continuing to elect the same politicians who guarantee that there will never be true competition in the Golden State. Instead, you get over-regulation, extreme environmentalism, world-class NIMBYism, and gasoline companies that can charge anything they want, because people will continue to pay for it.

ClayDen July 30, 2015 at 2:39 PM

I like Shell because they are a major sponsor of the Ferrari Formula 1 team, so buying their gas helps support my favorite team. I also have several friends that have or currently work for Chevron, so I also buy their gas. They both have good gas too and I like the convenience of using their credit cards.

35 Year Chevron Retiree July 30, 2015 at 2:56 PM

Glad I retired last year. Things are going to get more nastier than usual.

Mark July 30, 2015 at 3:01 PM

Ken W #5

Check your facts. 2015 is only half way over. Chevron is announcing Q2 earnings TOMORROW.

Look back at the previous few years earnings. They are easy to find. You might want to think about buying Chevron stock instead of complaining.

Concord Grape July 30, 2015 at 3:02 PM

#3 please enlighten us buffoons as to where Chevron makes their money, investments? Selling oil to Chile?

idiot hater July 30, 2015 at 3:05 PM

Speaking as a person who was a victim of cost cutting at Chevron. I can tell you that they will cut the worker bees & those who are left will pick up the extra work (and stress). Management will save themselves at a certain level. Of course if they keep cutting out the hard working individuals there will be no one left to manage….. just say’n. Always profits before people. Do People really do that…People do.

@Ken W July 30, 2015 at 3:08 PM

read that article again. It clearly says that REFINERY profits doubled… Which makes sense, since they could buy the cheaper crude after the price tumble. Meanwhile upstream profits crashed and burned, and that’s the segment that actually makes the real money.

Oil company profits in Q1 were the lowest they’ve been in several years, and Q2 will likely be even worse.

Concord Roncord July 30, 2015 at 3:19 PM

#12 retiree, what kind of work did you do?

dutch July 30, 2015 at 3:30 PM

I love these comments. The fact is that Chevron, like every other business in California has to be concerned with the business climate in this State (which is very anti-oil and anti-big business). That’s just the way it is. The oil business is extremely high maintenance both from the refining stand point and the exploration for more oil. An exploratory well is extremely expensive with no guarantee of success. Chevron may be doing well now but they are positioning themselves for the future. Remember folks, California is an extremely expensive State to do business in. I’m sure Iran’s oil also as something to do with it. Better to layoff a few to save the jobs for the many.

@Dwight Schrute July 30, 2015 at 3:37 PM

Read the article again. Only 270 of the 1500 jobs to be cut will come from open positions. The majority of the 1500 will be current employees. Plus an additional 600 contractors will be let go.

I can tell you for a fact that there are many worried IT employees in San Ramon because they have been told their positions are at risk. Portions of IT are being reorganized and there will be fewer jobs after the re-org. Everyone who works in an area being re-org’dwill have to reapply for a job in the new organization. There is no guarantee that your job will exist in the new org, nor is there any guarantee you will get your old job back even if it does exist because there could be a new manager who wants someone else in the your job. It’s possible some jobs will move from San Ramon to Houston or from Houston to San Ramon. Even more jobs are being cut in Houston, BTW. It’s brutal and there are many worried employees.

@Dutch July 30, 2015 at 3:49 PM

The cuts have nothing to do with the business climate in California and everything to do with the low price for a barrel of oil. Fact is, more jobs are being cut in Houston than in San Ramon in this round of cuts.

Wildcat July 30, 2015 at 4:14 PM

My job is being affected by this. It’s all about low oil prices and we are currently spending a lot of money getting some very large capital projects online. Bad time for prices to drop like this.
Terrible time around here right now. Lots of jobs gone.

See A Pattern ??? July 30, 2015 at 4:15 PM

Common thread businesses expand outside of CA.
Thank democrats who have run this state fort decades passing laws, regulations and raised taxes.
http://chiefexecutive.net/state-ranking-detail/2015/?state=CA

“The results of our 11th annual survey clearly show that CEOs favor states that foster growth through progressive business development programs, low taxes and a quality living environment. …”
2015 #50 California
http://chiefexecutive.net/2015-best-worst-states-business/

21 December 2012
‘Chevron moving 800 Bay Area jobs to Texas’
http://www.sfgate.com/bayarea/article/Chevron-moving-800-Bay-Area-jobs-to-Texas-4136930.php+

11 April 2013
‘Chevron’s Houston Move: Oil Giant Transfers 400 Jobs From California To Texas’
http://www.huffingtonpost.com/2013/04/11/chevron-houston-move_n_3061927.html

Another CA company expands operations outside of CA.
Apple
9 March 2012
Apple building $304 million campus in Austin Texas which may create up to 3600 jobs.
http://www.engadget.com/2012/03/09/apple-building-304-million-campus-in-austin-texas/
‘Apple builds in Texas, not California’
http://www.sandiegouniontribune.com/news/2013/may/26/apple-builds-in-texas-not-california/

26 June 2012
“…Apple is planning to build a data center east of Sparks, Nevada as part of a project that would see the company pump $1 billion into the state’s economy over the next 10 years.”
http://www.wired.com/2012/06/apple-reno-data-center/

@22 July 30, 2015 at 4:26 PM

Texas is corp headquarters and has been for years.

Wildcat July 30, 2015 at 4:47 PM

Just so folks can understand where oil companies make their money, it’s not in gasoline. Obviously they do make money from gasoline but not in the amounts people think.
Where these companies make their money is in the production of Oil and Gas. All you have to do is look at one of their annual reports and see how much they produce. Take that amount and multiply it by the market price for oil and gas and you will see where the money is. Naturally you have to take some out because there is a cost to get the stuff out of the ground.

Sid July 30, 2015 at 5:27 PM

#22, Take your political BS to the politics thread.

If you’d bother to read the article and the comments, you’d know that the story isn’t about Chevron moving jobs outside of California. They are cutting jobs in both San Ramon and Houston because the low price of oil means a drop in income for Chevron. In addition, they are committed to some very expensive projects. Google what they are doing in Australia for an example. As a result, they are slashing spending by cutting jobs.

Mike July 30, 2015 at 5:49 PM

Folks, Chevron-Texaco is the most leveraged integrated oil company to CRUDE OIL. More leveraged to crude than Exxon-Mobil or Conoco-Phillips. In fact, two-thirds of their revenues come from the production of crude oil. Yes, they do some refining and marketing. But if anything, the refining side of the business is always a challenge to come out profitable.

Chevron has a solid balance sheet and sports a $4.28 a sharedividend that has been raised 27 years in a row. However, like most oil companies they have cut their capital expenditures for 2015 by 13%; which is not as drastic as some of their competitors.

Again, they make their money off of crude oil production.
The lower crude prices are hurting them.

Loco July 30, 2015 at 6:51 PM

Makes sense, why would they need workers to do work that can be automated. Folks should retool their skills as automation and AI consumes 30% of the white collar/clerical jobs in the next 7-10 years.

Karino July 30, 2015 at 6:52 PM

Oh, this is such a terrible news! Obama should introduce a bill in Congress to try and help Chevron out. Give them some billions. They provide employment to over 60K people worldwide. We can’t, as a nation of good Christians, allow Chevron to suffer! Possibly. Maybe.
Can we?!

@Loco July 30, 2015 at 7:09 PM

Loco, many of the Chevron employees losing their jobs are highly skilled information technology employees. Chevron is not replacing them with computers or automation.

funny man July 30, 2015 at 8:01 PM

Just wondering, do they still have offices on diamond?

Politicians Can't Handle The Truth July 30, 2015 at 8:35 PM

Leaving CA

25 Sept. 2012
‘Comcast To Close 3 Northern California Call Centers; Shift 1,000 Jobs Out Of State’
“…We determined that the high cost of doing business in California makes it difficult to run cost-effective call centers in Northern California…”
http://sacramento.cbslocal.com/2012/09/25/comcast-to-close-3-california-call-centers-shift-1000-jobs-out-of-state/
…………………………….
“Initially, Comcast cited the state’s hostile business climate, but after politicians, including Gov. Jerry Brown, protested, the firm changed its stance”
http://blogs.sacbee.com/capitolalertlatest/2012/09/bloomberg-california-among-states-with-faltering-economies.html
…………………………..
“Hours after announcing it is moving 1,000 call center jobs out of California, Comcast changed its mind Tuesday about the reason for the decision.

The move was a strategic decision by the company and not a reaction to a hostile business environment in California, Comcast said in its second public statement of the day.”
http://www.bizjournals.com/sacramento/news/2012/09/25/comcast-retracts-criticism-of-state.html

@funny man July 30, 2015 at 11:18 PM

Yes, they still have offices on Diamond Blvd, but they’ll be moving out of them soon to save money. I’ve heard some of the employees from there will be moved to San Ramon.

Mike July 31, 2015 at 6:31 AM

The DIamond Blvd. location is a financial accounting division which has seen its ranks get “thinned” over the years. Chevron outsources a lot of their financial accounting jobs to workers in Chile and Argentina. Employee cost is 35% lower.

Mike July 31, 2015 at 6:36 AM

Chevron just reported earnings.
Their profit tumbled 90%.

They earned a net income of $571 million or .30 cents a share, compared with $5.67 Billion, or 2.98 per share, a year earlier. They would have posted a loss, had it not been from refining (downstream products like gasoline and lubricants) where profit quadrupled to $2.96 Billion. Obviously, lower crude prices hurt their crude oil revenues but helped their refined products.

They also sold $1.8 Billion in assets during the quarter.
One would have to question their current dividend given these results.
The dividend looks to be in line for a cut.

http://finance.yahoo.com/news/chevron-profit-tumbles-90-percent-132018791.html

Jojo Potato July 31, 2015 at 8:40 AM

@Mike – Re Chevron. At a recent retirees luncheon, John Watson (Chevron CEO) said he would never be the one to cut the company dividend. The Diamond Blvd building is for sale, it has held many different Chevron departments over the years, including the Credit Card processing which was outsourced a few years ago. The oil business is very cyclical, with crude prices recently reaching tremendous heights in 1980 and 2008. The current low price is due to increases in production from the U.S.and OPEC countries. Now with companies cutting back, production will fall again, setting us up for the next price spike. Hold on for the ride!

Cowellian July 31, 2015 at 9:51 AM

From Bloomberg:

Exxon, Chevron Brace for Dark Times Ahead

Exxon Mobil Corp. and Chevron Corp., the biggest U.S. energy producers, hunkered down for a prolonged stretch of weak prices after posting their worst quarterly performances in several years. . . .

http://finance.yahoo.com/news/exxon-chevron-brace-dark-times-

dutch July 31, 2015 at 1:53 PM

@20, Geography has nothing to do with it. Chevron is headquartered in California. @23, you need to read the article again, headquarters is still in San Ramon (that’s California if I’m not mistaken). Stop obfuscating. Chevron would do well if it moved to Houston (and may do so in the future). Read the links that 22 and 31 provide. Learn something for a change rather than spewing out the party line. Business is business and life isn’t fair (never has been). For those that lose their jobs I can empathize with you I lost my job with Chevron years ago for the same reasons (under Ken Durr) but I moved on and adapted. I assure you guys you will too (just don’t fall into the trap of feeling sorry for yourselves and act the victim. That’s the surest road to failure).

Aspirin July 31, 2015 at 5:02 PM

Wait until Iranian oil hits the market. Prices will drop even more.

This is why the Republicans are against the nuclear treaty with Iran.

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