Chevron to Shrink Refining Business, Cut Jobs
January 20, 2010
According to the Associated Press, Chevron Corp. has announced plans to shrink its refining business resulting in job cuts throughout the company. Chevron has not yet decided how many of its employees will be affected and which geographical area the cuts will come from. A spokesman said the company is reviewing its entire downstream operation and will announce more details about their reorganization in March. Petroleum refineries have struggled to make money as oil prices doubled from early 2009 while demand for gasoline and jet fuel dropped. Independent refiners shuttered some of their operations last year, and others are running at the lowest levels since 1991. Chevron recently warned its investors that profits would be down in the fourth quarter due to refinery operations. According to an interim report released earlier this month, Chevron said fourth-quarter profit margins were about 39 percent lower than last year for its Gulf Coast refineries. They were 59 percent lower in Singapore and 45 percent lower in Europe. According to the company spokesman, Chevron has not decided when they will announce the job cuts, however, the changes care expected to be in place by the third quarter, he said.