SHARE

Chevron confirmed Tuesday that it will cut 500 jobs from its headquarters in San Ramon, California as part of a larger cost cutting plan.

According to the San Jose Mercury News, the California-based company will reduce its headcount at its San Ramon office by 500 and is also cutting 950 positions from its Houston office along with 50 international jobs.

Chevron will also cut 600 contractor positions.

The layoffs have already begun and most of the reductions are expected to be complete by November.

The job cuts are part of a cost cutting plan that is projected to save the company about $1 billion.

“These initiatives, which are currently underway, are focused on increasing efficiency, reducing costs and focusing on work that directly supports business priorities,” spokeswoman Melissa Ritchie told the San Jose Mercury News.

The San Ramos job cuts may be partially offset by 800 jobs Chevron will move from its branch in Concord, California when it closes that facility, the Mercury News noted.

A Chevron spokesperson told the paper in December that the Concord facility is expected to close in early 2016.