Tuesday, December 7

Chevron Nigeria to Cut 25% of Workforce as Oil Demand Wobbles

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By Ruth Olurounbi and Chukwudi Ejimofor

(Bloomberg) —

Nigeria’s Chevron unit said it plans to cut 25% of its workforce to become more efficient and reduce operating costs, the latest sign demand for global oil is wobbling under coronavirus and new restrictions to contain it.

“The aim is to have a business that is competitive and an appropriately-sized organization,” according to a company statement. “We must make the necessary adjustments in light of the prevailing business climate.”

Workers began a strike Friday while union representatives accused the company of seeking to replace laid-off Nigerians by shifting their jobs abroad. But in its statement the company said there were no plans to move Nigerian jobs out of the country and said employees would stay in their jobs until the reorganization is complete.

The International Energy Agency last month trimmed its forecasts for fuel consumption for the rest of the year, warning that the global oil market was increasingly “fragile” as new outbreaks of coronavirus derail the recovery.

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