On Friday, Chevron Corporation (NYSE:CVX) said it could cut around 6,000 to 7,000 jobs and trim its capital spending by 25% next year, as profit fell in its third quarter.
Results for the quarter still dropped less than Wall Street had expected. Chevron shares are down 20% this year.
Chevron didn’t disclose when the job cuts could happen. According to a securities filing, the company had about 64,700 employees as of December 2014.
The second-largest US oil company states that it expects capital spending of $25 billion to $28 billion in 2016, downcast of 25% from this year’s budget. They also said it anticipates spending more in 2017 and 2018 up to around $20 billion to $24 billion.
At the end of the third quarter, Chevron reports earnings of $2.04 billion, $1.09 a share, which is down $5.6 billion, $2.95 a share from the previous year.
There is a 37% drop in revenue to $34.32 billion.
Analysts report forecast earnings of $1.16 a share and revenue of $30.9 billion, according to Thomson Reuters Corp (NYSE:TRI).
Capital spending reduced 15% to $7.97 billion to help earnings during that period.
Foreign currency effects added $394 million profit, increase from $366 million last year.
The company used $59 million profit in its exploration and production segment, down from $4.65 billion last year. Its US sector was brought to a loss of $603 million from a profit of $929 million last year.
The company’s average barrel of crude oil and natural gas liquids price was $42 during the quarter, $87 drop from last year. The average natural gas price was $1.96 per thousand cubic feet, a drop from $3.46 in the previous year.
Exxon Mobil Corporation (NYSE:XOM) said on Friday that revenue and profit dropped in its third quarter as prices dropped, but Wall Street results came in above expectations as the company cut back on spending and took advantage of its profits.