Image courtesy of Chevron.

Chevron said Thursday that it will cut just over 650 jobs as part of a previously announced layoff plan.

A Chevron spokesperson told Rigzone that the company will cut 665 positions in Houston as part of a broader plan to reduce its headcount by about 4,000 positions this year.

The spokesperson told Rigzone that affected employees will receive at least six weeks of transition pay along with severance benefits and career transition services.

Further details about the cuts have not been disclosed yet.

Chevron CEO John Watson first flagged the layoff plan in the company’s third quarter 2015 results.

Watson said in October that Chevron anticipated reducing its workforce by between 6,000 to 7,000 positions after further reducing its 2017 and 2018 spends.

In the company’s fourth quarter earnings call, Watson said Chevron expects to reduce its headcount by about 4,000 positions in 2016 and added that the company cut about 3,200 jobs last year.

Exports from Chevron’s Gorgon LNG project were halted earlier this week due to mechanical issues with the propane refrigerant circuit on Train 1 at the plant site.

Chevron said Wednesday that it now expects the project to be shut down for 30 to 60 days.

The Gorgon project is located in offshore Western Australia and has a total production capacity of about 2.6 billion cubic feet of natural gas and 20,000 barrels of condensate per day.

Chevron reported a loss of $588 million, or $0.31 per diluted share, for the fourth quarter of 2015, down significantly from earnings of $3.5 billion in the fourth quarter of 2014.

Full year 2015 earnings fell to $4.6 billion, or $2.45 per diluted share, down from $19.2 billion, or $10.14 per diluted share, in 2014.


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