Chevron to Cut Up to 20% of Global Workforce

Chevron has announced plans to lay off 15% to 20% of its global workforce by the end of 2026 as part of a cost-cutting initiative aimed at streamlining operations.

The U.S. oil giant is currently engaged in a legal battle with Exxon Mobil over its planned acquisition of Hess, a key component of its strategy to expand oil production. At the same time, Chevron is grappling with weak refining margins, which led to its first quarterly loss in that sector since 2020.

To address financial pressures, the company is targeting $3 billion in cost reductions over the next two years through technological advancements, asset sales, and restructuring efforts. With a workforce of 40,212 employees at the end of 2023, the layoffs could affect up to 8,000 people.

Chevron shares fell 0.7% in afternoon trading following the announcement. Employees have been given the option to take voluntary buyouts, with a deadline set for April or May, according to sources familiar with the matter.

The company is also set to unveil a new leadership structure in the coming weeks. “Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness,” said Vice Chairman Mark Nelson. “We do not take these actions lightly and will support our employees through the transition.”