John J. Watson

Chevron cutting up to 7,000 jobs; profit falls to $2 billion

Chevron Corp. is cutting up to 7,000 jobs, or 11% of its workforce, as it deals with lower oil prices that are cutting deeply into profit.

The company said Friday that it would cut capital and exploratory spending next year by one-fourth, with further cuts in 2017 and 2018 depending on the oil industry's condition then.

"With the lower investment, we anticipate reducing our employee workforce by 6-7,000," Chairman and CEO John Watson said in a statement. Chevron has 64,700 employees, according to a spokesman.

With lower prices for the oil and natural gas that it produces, Watson said the company was "focused on improving results by changing outcomes...

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