Chevron has announced plans to reduce its workforce by 15–20% by next year, around 9,000 jobs.
This move aims to streamline operations and lower costs as part of the company’s broader strategy to save $2 billion to $3 billion by 2026.
Job Cuts Impact Thousands
- Chevron employed 46,500 people around the world at the end 2023.
- The company’s decision could lead to job losses for up to 9,000 employees.
- The layoffs are expected to be part of a wider effort to simplify the company’s structure and improve operational efficiency.
Chevron’s vice-chairman, Mark Nelson, said:
“Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness.”
This restructuring is part of the company’s response to shifting market conditions and the need for greater efficiency.
The Broader Impact on Oil and Gas Jobs
The layoffs come at a time when US oil and gas employment remains about 10% lower than pre-pandemic levels, despite the surge in domestic production.
Other major oil companies, such as ExxonMobil, have already reduced their workforce significantly, with ExxonMobil cutting 17% of its global staff since 2019.
Chevron’s stock has underperformed compared to ExxonMobil’s over the past three years. However, the company has seen growth in key areas, including the Permian Basin and its Tengiz development project in Kazakhstan.
Financial Strategy Driving Workforce Reductions
Chevron’s CEO, Mike Wirth, said the company’s focus was on cash flow rather than rapid expansion.
This strategy includes modest spending on new projects, potentially reducing the need for a large workforce.
He said:
“We do not take these actions lightly and will support our employees through the transition.
“But responsible leadership requires taking these steps to improve the long-term competitiveness of our company.”
Chevron has also pursued growth through its $53 billion acquisition of Hess, which holds a 30% stake in Exxon’s Guyana oil project.
This acquisition is expected to contribute to future growth.
Refining Challenges and Future Outlook
In addition to workforce cuts, Chevron recently reported weaker-than-expected earnings for the fourth quarter.
The company saw a decline in refining margins, marking the first loss in this sector in four years. Wirth noted that the surge in fuel margins seen after the pandemic has come to an end, with a continued decline expected throughout 2025.
As Chevron navigates these financial and structural challenges, the company remains focused on streamlining its operations to remain competitive in the ever-changing energy sector.
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Looking Ahead: Chevron’s Reshaped Future
Chevron’s plans to reduce its workforce and cut costs reflect the company’s push to adapt to evolving market conditions.
While the job cuts are a significant blow to employees, the company is positioning itself for greater long-term success.
As it focuses on cash flow and profitability, Chevron’s efforts to reshape its structure may help it remain competitive in a rapidly changing global energy market.
