In a company statement, Chevron (CVX) notes the strong performance in 2009 of its oil and gas production and its exploration projects, but it also mentions the "difficult global market conditions" that are prompting more cost reductions.
The statement from the company quotes Mike Wirth, executive vice president of Chevron's Global Downstream operations. "Downstream market conditions are likely to be difficult for the next several years. We intend to further concentrate our downstream portfolio in North America and Asia-Pacific. These are markets in which we have the greatest competitive strength. We are also rapidly and aggressively lowering costs, reducing capital spending, improving efficiency and simplifying our organization."
Chevron Plans to Solicit Bids
Chevron says it plans to solicit bids for some of its operations and markets in Central America, the Caribbean and Europe - including its Pembroke refinery in Wales, UK. The company is also "reviewing operations" in Hawaii and Africa, outside of South Africa, while reducing its downstream workforce.
The company says its first quarter 2010 charges for severance are currently estimated in the $150 million to $200 million range, on an after-tax basis.
The company has about 62,000 employees worldwide, including an estimated 5,000 workers at its service stations.
Sales of Chevron fell about 18 cents in early Tuesday trading.
