Chevron cutting 1,000 more jobs after missing earnings target
Chevron said Friday that it will cut another 1,000 jobs after posting a $725 million first quarter loss.
According to the Wall Street Journal, the company will cut 1,000 jobs later this year, bringing Chevron’s total number of job cuts to 8,000 workers, or about 12 percent of its workforce.
Chevron has not disclosed further details about the cuts.
Chevron reported a loss of $0.39 per diluted share for first quarter 2016, compared with earnings of $2.6 billion, or $1.37 per diluted share, in the 2015 first quarter.
According to Seeking Alpha, Chevron was expected to post a $0.20 loss per share.
The company’s Upstream segment reported a loss of $1.45 billion, compared to $1.56 billion in earnings in the first quarter of 2015.
U.S. upstream operations incurred a loss of $850 million in first quarter 2016 compared to a loss of $460 million from a year earlier due to lower crude oil and natural gas realizations that were partially offset by lower operating expenses.
International upstream operations incurred a loss of $609 million in first quarter 2016 compared with earnings of $2.02 billion a year ago.
The company’s Downstream segment reported earnings of $735 million, down from $1.42 billion in earnings a year ago.
U.S. downstream operations earned $247 million in first quarter 2016 compared with earnings of $706 million a year earlier.
International downstream operations earned $488 million in first quarter compared with $717 million a year earlier.
Net charges in first quarter 2016 were $1 million, compared with $416 million in the year ago period.
Foreign currency effects decreased earnings in the quarter by $319 million, compared with an increase of $580 million a year earlier.
Sales and other operating revenues in first quarter 2016 were $23 billion, compared to $32 billion in the year-ago period.
Capital and exploratory expenditures in first quarter 2016 were $6.5 billion, compared with $8.6 billion in the corresponding 2015 period.
The board of directors of Chevron Corporation declared a quarterly dividend of $1.07 per share.
“Our efforts are focused on improving free cash flow. We are controlling our spend and getting key projects under construction online, which will boost revenues,” Chevron chairman and CEO John Watson said.