With oil prices falling rapidly, the U.S. energy industry is feeling the effects. More than 87,000 people have been fired since prices began to drop earlier this year, and now it's Chevron's turn to begin massive layoffs. The oil company announced Friday that it would be cutting between 6,000 and 7,000 employees, according to The Guardian.
Chevron has cut its yearly budget in 2016 by 25 percent, which has forced the company to lose about 10 percent of its workforce, Reuters reported. These layoffs by Chevron are some of the biggest throughout the industry thus far.
These plans don't just affect this year's budget, but they will last for year to come. The company plans to spend between $35 billion and $28 billion next year, which signals another budget cut. Layoffs will also continue well into 2018.
Oil prices have fallen drastically over the last year, from $115 to less than $50 this month, according to The Guardian. Chevron has seen a loss in profits as a result, dropping 64 percent in the third quarter.
Chevron is not the only company feeling the heat, as Exxon Mobil is also seeing profit drops, forcing the company to cut spending and begin major layoffs, according to The Wall Street Journal.
