2016: international oil company layoffs to continue

Author:Admin Read:866 Date:2016/9/4
Introduction: According to incomplete statistics, in 2015 the global oil industry has more than 250000 jobs. In the first quarter of 2016, at the same time of released 2015 annual report, many company also rele...

According to incomplete statistics, in 2015 the global oil industry has more than 250000 jobs. In the first quarter of 2016, at the same time of released 2015 annual report, many company also released the planned layoffs, involving tens of thousands of practitioners of oil.

Falling profits is the root cause of the layoffs. By low oil prices, exxonmobil, BP, shell, chevron and total the five largest international oil companies’ profits are shrinking. Results according to 2015 years, according to the five big oil fell by an average of 34.75% in the first half of last year’s income, net profit fell 54.38% from a year on average. Among them, BP net profit by the switch losses, loss of $3.221 billion, minimum shell’s net profit decline, fell 14.26%. And exxon mobil, net profit, the largest at $9.13 billion, but it is also compared with the same period last year dropped by 48.94%.

In the middle of January 2016, BP, outgoing messages for the global oil production cut about 4000 employees, about 5% of the global workforce. After more than half a month, BP announced job cuts again: is expected before the end of 2016, 4000 upstream contractors and staff cuts, and downstream people again laid off in 2017, 3000, a total of big lay off 7000 people around the world.

In the fourth quarter of last year, chevron unexpected losses, quarterly revenue of $28 billion, $42 billion fell by more than 33% than the same period last year. Therefore, the company again at the beginning of this year has been clear about the "reduced" plan: cut 3200 jobs in 2015, on the basis of this year to continue to cut 4000 jobs, cut staff by 10%.

In February, royal Dutch shell’s President Fan Bodeng said the company plans to lay off 10000 employees in 2016, and the company’s business restructuring, in response to the downturn caused by the pressure.

One side layoffs continue, stop hiring at the same time. 2015 total net profit fell 20%, therefore, the company plans to cut capital spending in 2016 to $19 billion, $4 billion target asset is sold, and plans to cut 2000 jobs this year. At the same time, the company’s crude oil exploration, refining and chemical goalkeeper stopped hiring new employees.

Job cuts, however, is not the only option for international oil companies. Oil giant exxon mobil in 2015 than in 2014 for the year fell 50%, but the company still optimistic attitude, will focus on came up out of the cost management of project execution and high efficiency to save money, so far not announced job cuts.

Upstream to reduce capital investment, the oil industry is under more pressure. Schlumberger announced in January this year, due to the numerous customers accident cancel the project, the company full-year results or further under pressure. In 2015 the last quarter, schlumberger reported loss of $1 billion, affected by the company decided to sharply cut 10000 jobs this year. Since November 2014, schlumberger laid off 34000 employees, before is 26% of the total number of employees. Halliburton also announced that it will further cut about 8% of the staff, or 5000 people. Since 2014, halliburton has been laid off employees 25%, nearly 22000 people. (reporter Jia Tianyi finishing)

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