REUTERS: Occidental Petroleum is offering its employees voluntary buyouts over the next two weeks, according to a document seen by Reuters on Tuesday, citing the sharp decline in oil prices and the coronavirus pandemic for "severe dislocations" in its business.
The Houston-based company last week posted a US$2 billion quarterly loss and has had to slash capital spending drastically to shore up its balance sheet amid the worst oil-and-gas industry downturn in 40 years. Occidental said that if spending cuts are not met, it will have "serious potential consequences" to the company, the document said.
The company declined to comment.
Energy companies worldwide, including Exxon Mobil Corp and Royal Dutch Shell, have slashed capital expenditures and oil output to reckon with the collapse in fuel demand due to the coronavirus pandemic.