Chevron Launching Layoffs in April
Chevron Corp. will be launching a round of layoffs beginning April 6 as it sells its Appalachian natural gas operations, according to a WARN notice the company sent to the Pennsylvania Department of Labor & Industry earlier this month. According to the notice the potential number of people affected totals 288 employees at its regional headquarters at 700 Cherrington Parkway in Moon Township, PA.
The notice indicated that an unspecified number of layoffs would occur April 6 and added that some employees will be offered temporary assignments, with extended layoff dates potentially through the end of this year, according to the Pittsburgh Business Times.
"We are taking active steps to reduce job loss and will facilitate the placement of as many impacted employees as we can with other Chevron business units," the letter stated, according to the Pittsburgh Business Times. Chevron also indicated that any employees who are laid off would receive severance and outplacement services.
Rigzone reached out to Chevron directly for comment on the matter and received the following statement via email on Feb. 24: "The WARN Act is a regulatory requirement intended to give employees advance notice before potential layoffs at a plant or facility. It’s too soon to know how many employees will be affected on or after the April 6 date indicated in the WARN letter."
At the end of 2019 the company announced a $20 billion CAPEX budget for 2020 and that it was considering strategic alternatives, including divestment, for “gas-related opportunities including Appalachia shale, Kitimat LNG, and other international projects”. During 4Q 2019 the company took a hefty write-down due to ongoing depressed natural gas prices.
Chevron and other large explorers in North America with an eye for shale have struggled in recent quarters under the weight of low oil and gas prices, weaker shareholder returns and substantial operational costs. The Permian Basin in particular has alternated from being a corporate blessing and a curse for much of 2019.
To contact the author, email email@example.com.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Vice President of Content | Rigzone