87,000 people have lost their jobs in the oil sector this year and that number is about to increase. Plummeting oil prices are forcing Chevron to layoff 6,000 to 7,000 employees.
The company is cutting investment by a fourth. “With the lower investment, we anticipate reducing our employee workforce by 6,000-7,000,” chairman and CEO, John Watson, said in a statement.
Watson also says the company remains “focused on improving results by changing outcomes within our control.”
Oil prices fell below $50 in October which resulted in Q3 profit drops of 64% at Chevron.
Analysts are predicting that more jobs will be cut in the oil industry over the coming year as oversupply and falling demand continue to hammer prices into the ground. China’s growth is also slowing, although analysts are still not sure by how much.
With Chevron slashing 7,000 jobs, analysts are now worried that the nation’s second largest oil producer may be realizing that gas prices will remain low for the foreseeable future and that thin margins will leave companies with no choice but to announce another wave of layoffs in the near future.