Chevron Nigeria reportedly plans to cut 25% workforce amid Covid-19 crisis

The Nigerian unit of American oil major Chevron reportedly plans to downsize its local workforce by 25% in order to reduce operating costs.

The latest move comes due to weak demand for oil in the wake of the novel coronavirus (Covid-19) outbreak and new restrictions to contain the virus spread, BloombergQuint reported.

The news agency cited the company as stating: “The aim is to have a business that is competitive and an appropriately-sized organisation.

“We must make the necessary adjustments in light of the prevailing business climate.”

The company did not disclose how many jobs would be affected but noted that the downsizing would affect workers across its Nigerian operations.

On 2 October, workers began a strike while union representatives “accused” the company of seeking to replace laid-off local employees by moving their jobs abroad.

However, the company said in a statement that there were no plans to shift jobs of the Nigerians out of the country and added that employees would remain in their jobs until the completion of the reorganisation.

Oil prices in Nigeria fell sharply after global benchmark Brent crude hit a 21-year low below $16per barrel as the Covid-19 outbreak hit demand.

Last month, the International Energy Agency (IEA) trimmed its 2020 oil demand forecast, warning about the slower pace of the global economic recovery from the pandemic.