Chevron cutting some 7,000 workers as oil prices slide

SAN RAMON , Calif., Oct. 31 (UPI) -- Chevron Corp. announced Friday it will cut up to 10 percent of its workforce, or about 7,000 workers, as oil prices continue to slump.

Chevron, the second largest energy company by revenue in the United States, said it will make its deepest cuts since the 2001 Texaco merger. At the same time, oil and gas output will rise by up to 15 percent through the end of 2017, rather than the previously forecast 20 percent production growth.

"We expect capital and exploratory expenditures for 2016 to be $25 billion to $28 billion, roughly 25 percent lower than this year's budget," Chevron chairman and CEO John Watson said. "We expect further reductions in spending for 2017 and 2018, to the $20 billion to $24 billion range, depending on business conditions at the time. With the lower investment, we anticipate reducing our employee workforce by 6-7,000."

Both Chevron and Exxon Mobil saw their quarterly profits plunge. Friday, Exxon Mobil said its profit in the third quarter of 2015 was $4.24 billion, a 47 percent drop from the same time last year.