In this news, we discuss the Chevron Nigeria plans to cut 25% of staff after oil price drop.
ABUJA (Reuters) – The Nigerian unit of oil major Chevron CVX.N plans to cut its local workforce by 25% to cut costs, it said on Saturday, due to weak demand for oil in the wake of the coronavirus pandemic.
The company, which operates a joint venture with Nigerian state-owned company NNPC, said it needs to make the adjustments to remain competitive in light of the prevailing business climate. He did not say how many jobs would be affected, but said the cuts would affect workers in all of his operations.
He added in a statement that there were no plans to move jobs overseas and that he was engaging with his workforce on the plan. Employees will keep their jobs until the reorganization is complete.
Oil prices, Nigeria’s main export, fell sharply at the start of this year, and in April, the global benchmark Brent LCOc1 hit a 21-year low below $ 16 as the The coronavirus outbreak has hit demand, although oil markets have since recovered.
The International Energy Agency (IEA) cut its oil demand forecast for 2020 in September, citing caution about the pace of economic recovery after the pandemic.
Reporting by Tife Owolabi; Written by Chijioke Ohuocha; Edited by David Holmes
Original © Thomson Reuters
Originally posted 2020-10-04 08:16:10.