Chevron is slashing 7,000 jobs

Chevron Corp, the second-largest U.S.-based oil producer, posted a 64 percent drop in quarterly profit on Friday as cost cuts failed to offset tumbling crude and natural gas prices.

The company also said it planned to cut 6,000 to 7,000 jobs.

"We are focused on improving results by changing outcomes within our control," CEO John Watson said in the earnings statement. "Operating and administrative expenses are 7 percent lower than last year, and we expect further reductions in the quarters ahead."

The company reported net income of $2.04 billion, or $1.09 per share, compared with $5.59 billion, or $2.95 per share, in the year-ago period.

Production fell 1 percent to 2.5 million barrels of oil equivalent per day (boe/d).

The stock was up by about 1% premarket. Over the past 12 months, it's fallen 22%.

(Reuters editing by Chizu Nomiyama)