Chevron informed 23ABC that they are planning on laying off 11 percent of their workforce in the San Joaquin Valley.
The San Joaquin Valley business unit headquarters is based in Bakersfield and they have operations in Kern, Fresno, and Monterey counties. According to their website, they employ nearly 850 full-time employees.
The exact number of employees affected in Bakersfield are unknown at this time. According to a Chevron spokesperson, some of the affected employees could obtain other positions within the company, or choose to take early retirement.
"The percentage reduction in positions does not equate to a number of employees that is known at this time," said Jonathan Harshman.
23ABC reached out to the company to get a statement and said that the decision and process started in 2017. In trying to reduce operating costs and efficiency this requires fewer positions.
They said this is a difficult decision and they do not make it lightly.
Below is the full statement from a Chevron spokesman:
Chevron has been taking action to better position the company to compete in any operating environment and address current market conditions. This includes reducing our operating costs and capital investments, driving efficiencies in our workflows and processes, and streamlining our organizational structures to reflect the efficiencies and match projected lower activity levels. The new organizational structures will, unfortunately, require fewer positions across the company including in the San Joaquin Valley Business Unit (SJVBU). Given our anticipated activity levels, the new SJVBU organization has 11% fewer positions. This is a difficult decision, and we do not make it lightly.
In 2017, we modified SJVBU’s operating model to improve our efficiency and work processes and become more competitive. This was a standalone effort. Currently, we are part of a broader effort across the company and coupled with unprecedent events that none of us could have foreseen. We’ve responded by focusing on the things we can control, such as reducing capital spending and operating costs, but it is necessary to review and further streamline our organizational structure and workflows to meet the current lower projected activity levels.
We value the relationships we have formed in the communities where we operate. We are committed to continuing to work with our partners to improve the social, environmental and economic vitality of the communities where we live and work.