Chevron plans to fire 15% to 20% of the global workforce by the end of 2026. This said Wednesday as it seeks to reduce costs and simplify its business.
Chevron is caught up in a court battle with rival Exxon Mobil over the planned acquisition of oil producer Hess. This is the cornerstone of a plan to increase oil production.
At the same time, the company faces a weak margin in its refinery business, reporting losses in the fourth quarter for the first time since 2020.
The layoffs are from a change in technology, asset sales and how and where the work is carried out, as the company says it aims to cut costs by $3 billion by 2026.
At the end of 2023, Chevron employed 40,212 people across its operations.
The layoff for 20% of total employees is approximately 8,000.
Chevron's shares fell about 1% in afternoon trading.
The company told employees it could begin making an acquisition choice now by April or May, according to a source familiar with the matter.
Chevron will restructure its business and release a new leadership organization chart over the next two weeks, sources said.
“Chevron is taking action to simplify its organizational structure, execute it faster and more effectively, and position its company to strengthen its long-term competitiveness,” says Mark, vice-chairman of Chevron. Nelson said in a statement. “We don't underestimate these actions and support our employees through the transition.”
