Chevron Corp. is cutting 2,000 jobs this year and selling some overseas operations as it revamps its struggling refinery and marketing operations, though the impact locally is unclear.

The job cuts represent almost 12 percent of its 17,000 workers in the so-called downstream part of its business and just over 3 percent of its overall work force.

Executives of the second-largest U.S. oil producer are still deciding where and when they will eliminate the jobs as they try to complete the restructuring by the third quarter, company spokesman Lloyd Avram said. Additional cuts are expected next year.

Dan Johnson, spokesman for Chevron's refinery in Salt Lake City, said it is too early to tell whether any of the facility's 279 employees will be affected. "Chevron is restructuring its downstream operations, and that means we will be under continued pressure to better manage our costs to ensure that we're operating at maximum efficiency."

Refineries, which turn crude into gasoline, diesel and other fuels, struggled amid rising oil prices and falling demand last year. In addition, new refineries are being built.

"Downstream conditions are likely to be difficult for the next several years," Mike Wirth, executive vice president of Chevron's global downstream business, said in a statement.

Major oil companies worldwide have battled weak demand that cut into profits at refineries.

Royal Dutch Shell recently said it would cut an additional 1,000 jobs in 2010, mostly at its refining operations. France's Total SA said Monday that it will end refining operations at its plant in Dunkirk, France, in response to falling demand.

In the fourth quarter, Chevron lost $613 million in its refining operation compared with a $2 billion profit in the year-ago quarter. The company has said it will reduce spending by $1 billion this year on downstream businesses, which include refining, marketing and transportation.

Chevron wants to focus its downstream portfolio in North America and the Asian-Pacific region, and is shifting its production toward natural gas and Asian assets.

The company has about 60,000 employees worldwide, including about 17,000 in downstream operations that include refining, marketing and retail operations. It laid off 1,900 employees in downstream operations last year.