Chevron Says It Will Cut 2,000 Jobs

The Chevron Corporation said on Tuesday that it would cut 2,000 jobs this year and sell some overseas operations as it revamped its struggling oil refinery, marketing and transportation operations. þþThe job cuts represent almost 12 percent of its 17,000 workers in the so-called downstream part of its business and just over 3 percent of its overall work force. þþExecutives are still deciding where and when they will eliminate the jobs as they work to complete the reorganization by the third quarter, a spokesman, Lloyd Avram, said. Additional cuts are expected next year. þþChevron said it would also seek bids for its Pembroke refinery in southwest Wales, and fuels marketing, aviation and lubricants businesses in the Caribbean and some markets in Central America. þþOil refineries, which turn crude into gasoline, diesel and other fuels, struggled amid rising oil prices and falling demand last year. In addition, new refineries are being built. þþ“Downstream conditions are likely to be difficult for the next several years,” Michael K. Wirth, executive vice president of Chevron’s global downstream business, said in a statement. þþAn analyst at Argus Research, Phil Weiss, said Chevron was making the right move, but he questioned whether the producer would get a good price for the assets in the difficult business environment. Chevron has said it will reduce spending by $1 billion this year on downstream businesses, which include refining, marketing and transportation. þþIn addition to seeking bids for the Pembroke refinery and for fuels marketing, aviation and lubricants businesses in the Caribbean and Central America, Chevron said it was reviewing refinery operations in Hawaii and other undisclosed operations outside South Africa, Mr. Avram said. þþThe company, which is based in San Ramon, Calif., said severance charges were expected to be $150 million to $200 million on an after-tax basis in the first quarter. þ