While Comey confirmed that finished lubricants and base oils are affected, he declined to provide further details about the impact of the downsizing on those businesses.

The layoffs are part of Chevrons previously announced plans to reduce its global downstream business by 5,700 jobs over three years, said Comey. The company laid off 1,900 workers last year and will lay off 3,800 by the end of next year.

The restructuring is broad-based, said Comey, and impacts the entire portfolio of downstream businesses. It has impacted marketing more than other segments.

By September, Comey continued, the new downstream model will be in place. But downstream workforce reductions are expected to continue through next year.

Overall the company performs well, but segments face strong challenges, including reduction in demand, Comey said. Margins for refining and marketing have decreased dramatically. We anticipate these conditions will continue for the next few years.