Chevron Nigeria plans to cut 25% of staff after oil price drop

Business

The Nigerian unit of oil major Chevron CVX.N plans to cut its local workforce by 25% to reduce 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 Nigeria’s state-owned NNPC, said it needed to make the adjustments to remain competitive in light of the prevailing business climate. It did not say how many jobs would be affected but said the cuts would affect workers across its operations.

It added in a statement there were no plans to move jobs abroad and it was engaging with its workforce on the plan. Employees will retain their jobs until the reorganisation is completed.

Prices of oil, Nigeria’s main export, fell sharply early this year and in April global benchmark Brent LCOc1 hit a 21-year low below $16 as the coronavirus outbreak hit demand, though oil markets have recovered since then.

The International Energy Agency (IEA) trimmed its 2020 oil demand forecast in September, citing caution about the pace of economic recovery from the pandemic.