Chevron will lay off 15-20% of its global workforce across the next two years, part of a bid to reduce structural costs.
The company is targeting US$2-3 billion in cost reductions by 2026. Chevron projects the layoffs will be mostly complete by the end of that year.
“Chevron is taking action to simplify our organisational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness,” said Chevron vice chairman Mark Nelson. “We do not take these actions lightly and will support our employees through the transition.”
Chevron flagged in November that it was aiming to cut US$3 billion in costs, saying the company was planning asset sales and workflow changes as well as potential layoffs.
“We’re going to change where and how we do some of our work,” said CEO Mike Wirth at the time.
The company reported 40,212 employees in 2023, meaning these layoffs could impact around 8,000 workers.
Chevron also plans to reorganise its leadership within the next two weeks.
Chevron saw US$3.2 billion in reported earnings last quarter, with production increasing by 7% worldwide.
Production rose by 19% in the United States, reaching a record high. While domestic oil and gas production in the U.S. has surged in recent years, job numbers in the sector are around 10% below pre-pandemic levels.
Chevron’s share price (NYSE: CVX) closed at US$154.90, down from its previous close at $157.44. Its market capitalisation is $271.85 billion.
