Two major oil companies announce jobs cut within a week
Chevron said trimming 10-15% of its global workforce was part of its plan to cut operating costs and streamline the organisation, while Shell is seeking to transform its business to, among other things, expanding its solar footprint and network of electric vehicle charging.
Chevron announced in May that it will cut 6,000 of nearly 45,000 global jobs.
Singapore is Chevron’s regional trading hub, hosting the latter’s regional headquarters for its downstream business, including a 50% stake in Singapore Refining Company (SRC). SRC processes 290,000 barrels of crude daily and produces gasoline, jet fuel and diesel.
The move to cut jobs “is a difficult decision, and one that Chevron does not make lightly”, a company spokesman told The Business Times. “In Singapore, the overall impact is estimated to be on the lower end of the range of 10-15%… we also have arranged for resources to be made available to those leaving Chevron as they transition out of the company.”
Meanwhile, Shell’s decision to cut 500 jobs from its present 1,300 staff by the end of 2023 was a consequence of its plans to halve its crude-processing capacity at its Pulau Bukom oil refinery from 500,000 barrels of oil per day to 250,000, as part of its 10-year plan towards a low-carbon future, reported CNA.
Shell plans to progressively reduce its staff strength to 1,100 by end 2021 and 800 by 2023 from its current 1,300. In September, Shell’s parent company said it planned to cut up to 9,000 jobs globally or more than 10% of its workforce.