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Who’s next? July 29, 2015

Posted by hslu in Economics, Energy, jobs.
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Chevron will eliminate 1500 jobs to help the oil company deal with low oil price. It needs To let these people go to be abe to keep the dividends at current level.

It’s the first U.S. major oil company to do so.

The headcount reduction at CVX is superficial and it affects HQ only. If low oil price persists, more cuts will come. There is no other way to do it.

Now, who will be the next U.S. major oil company to do the same?

You can flip a coin to decide because there are only two left:

1.   ExxonMobil
2.   ConocoPhillips

I believe XOM regularly let the bottom 1 to 2% employees go and XOM runs its E&P business very conservatively.

My guess is COP because it is roughly 40% of the size of CVX in terms of market value and about 30% in terms of number of employees.

We’ll see how long COP can resist the urge to hand out pink slips.
Afterall, some one has open the flood gate.

Prettysoon, a trikle will become a gusher spreading out to others.

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