Texaco Inc. is cutting 1,000 jobs, or five percent of its work force, becoming the latest big oil company to announce cutbacks because of a worldwide slump in oil prices.
Texaco said Thursday the job cuts will come from its exploration and production operations, which employ 8,000 full-time workers and contractors. The White Plains, New York-based company has a total of 19,000 employees worldwide.The job cuts are expected to slash about $200 million in annual costs. They should be completed by the first quarter of next year.
"Changes in the industry have fundamentally altered the competitive landscape and Texaco must respond in order to improve its position," said John J. O'Connor, Texaco senior vice president.
Oil prices, depressed by low demand brought on in part by the Asian economic crisis, are at their lowest levels in a decade. The slide has caused other major oil companies to announce cutbacks in recent weeks.
On Wednesday, Mobil Corp. and Unocal Corp. said they would cut spending on capital investments next year. Mobil also disclosed it would cut an undisclosed number of jobs, while Unocal said its cost-savings plans would also likely results in layoffs.
In addition, Atlantic Richfield Co. has said it will eliminate 900 jobs and close 20 small offices over the next two years to trim costs by $500 million. Occidental Petroleum Corp. has said it will eliminate 80 jobs from its headquarters staff and 210 jobs at its Bakersfield, California, oil and gas drilling subsidiary.