More job cuts are on the way from one of the largest oil companies in the United States, and the bulk of the layoffs will be right here in Houston.
On Tuesday, Chevron announced that it will cut about 1,500 positions over the course of 2015. The bulk of those job cuts will come from Houston, where 950 of the company's 8,000 Houston employees will be let go. About 50 international employees and 600 contractor positions will also be axed. Chevron is responding — as all of the oil companies are these days — to low global oil prices, according to Reuters.
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It's worth noting, in case you've been hiding in a cave for the past year, that low oil prices have been a problem for a while now. Crude oil prices started to tank back in June 2014 in response to a glut of crude oil on the market as the American shale plays and the powers that be in the Organization of the Petroleum Exporting Countries (ahem, the Saudis) continued pumping oil out of the ground and putting it up for sale in record numbers.
Right after the start of 2015 oil companies began to tighten things up by selling off assets and announcing layoffs. That was about the time that two oil field service giants, Baker Hughes and Halliburton, announced plans for a merger. Since then the two companies have cut about 27,000 jobs, double the numbers each company had originally announced back in February, according to the Wall Street Journal. As of April, about 100,000 energy jobs had ended up on the chopping block and energy companies have cut about 50,000 more in the past three months as oil prices have continued to be relatively crummy, the Wall Street Journal reports.
And now Chevron is announcing more job cuts and most of them are coming from Texas. The worst part is that this thing is most likely far from over. With oil hovering around $47 per barrel, companies will start putting jobs on the chopping block like its going out of style. Chevron is a behemoth, the second largest oil company in the United States, and when a company of that size starts making cuts it's a fair bet that the rest of the industry will soon be shedding jobs.
Seems all we can do is wait and see who will start showing people the door next.