Houston — Chevron said on Wednesday will fire between 15% and 20% of its global workforce by the end of 2026 as it seeks to cut costs and simplify its business.
The US oil company is embroiled in a court battle with rival ExxonMobil over its planned acquisition of oil producer Hess, which is the cornerstone of its plans for increasing output. At the same time, the company is facing weak margins in its refining business, which reported a loss in the fourth quarter for the first time since 2020.
The layoffs come as the company targets $3bn in cost cuts through to the end of 2026 from leveraging technology, asset sales and changing how and where work is performed.
At the end of 2023, Chevron employed 40,212 people across its operations. Dismissing 20% of total employees would amount to just over 8,000 people.
Shares of Chevron declined 0.7% in afternoon trading.
The company told employees they can begin opting for buyouts from now until April or May, according to a source familiar with the matter.
Chevron will reorganise its business and announce a new leadership organisational chart in the next two weeks, the source said.
“Chevron is taking action to simplify our organisational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness,” vice-chair Mark Nelson said in a statement. “We do not take these actions lightly and will support our employees through the transition.”
Reuters
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