Chevron sacks 1,000 additional staff in Nigeria

Peter Olaniyi |

The United States (U.S.) oil supermajor, Chevron Corporation, on Friday declared that it has reduced its workforce by 25 per cent in the various levels of the organisation in Nigeria, creating apprehension in the industry. This data obtained showed that, about 1000 workers were affected.

The sack of staff was contained in a statement signed by Chevron Nigeria Limited (CNL’s) General Manager Policy, Government and Public Affairs, Esimaje Brikinn.

A classified document of a deal the oil major struck with the oil workers union, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over the sack, had earlier been obtained, which suggest there might be no labour action over the mass sack.

The document showed that Chevron had earlier sacked 600 being the 15 per cent of the staff before now. The 25 per cent fresh mass sack will, as a result of this, affect 1000 people.

Brikinn explained that the decision is aimed at improving capital efficiency and reduce operating costs in line with the changing business.

Those to be affected, the statement read, would continue to retain their employment until the restructuring process was completed.

Brikinn explained that with the restructuring, the company will have an appropriately sized organization with improved processes.

“Chevron Nigeria Limited (“CNL”), operator of the joint venture between the Nigerian National Petroleum Corporation (NNPC) and CNL (the “NNPC/CNL JV”) together with its affiliates, confirms that it is reviewing its manpower requirements in the light of the changing business environment, while continuing to evaluate opportunities to improve capital efficiency and reduce operating costs.

“In this process, the company will be streamlining its workforce and improving service delivery and overall performance at all levels.

“This will increase efficiency and effectiveness, retain value, reduce cost, and generate more revenue for the Federal Government of Nigeria.

“The new organizational structures will, unfortunately, require approximately 25 percent reduction in the work force across the various levels of our organization.

“It is important to note that all our employees will retain their employment until the reorganization process is completed,” he noted.

The statement clarified that CNL has no plans to migrate job meant for Nigerians outside the country as it promised to continue to support efforts by the Federal Government to build a prosperous Nigeria through employment generation.

According to him,” we have prospects for our company in Nigeria; however, we must make the necessary adjustments in light of the prevailing business climate; and we need everyone’s support to get through these tough times stronger, more efficient and more profitable, in order to sustain the business.”

He stated further that CNL is in alignment with both its Joint Venture partners, the NNPC, and the Department of Petroleum Resources (DPR) on this process; and “we are actively engaging our workforce to ensure they understand why this is being done. We will continue to consistently engage all relevant stakeholders, including the leadership of the employee unions as we continue this process of business optimization.

“At CNL, the welfare and safety of our workforce is one of our highest priorities. Making changes to the organization is never easy for anyone that will be impacted, but it is necessary to improve our ability to remain competitive in Nigeria.

“Reducing the cost and improving the efficiency of our operations is critical to generating more revenues for the Federal Government of Nigeria.”