Chevron to cut workforce by up to 20%
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The Chevron logo. Photo: Photo by Joan Cros/NurPhoto via Getty Images
Chevron plans to cut its global workforce by 15% to 20%, with most reductions before the end of 2026, the U.S.-based multinational giant said Wednesday.
Why it matters: It's the second-largest U.S. oil and gas company behind ExxonMobil.
The big picture: The company's global employee count is 39,742 excluding service-station workers, Chevron said.
- So the high end of cuts, 20%, would be roughly 8,000 employees.
- The reductions are consistent with prior plans to achieve $2 billion to $3 billion in structural cost reductions, mostly by the end of 2026, Chevron said.
Driving the news: The move is designed to simplify its organizational structure, execute more quickly and effectively, and "position the company for stronger long-term competitiveness," a top official said.
- "This work includes optimizing the portfolio, leveraging technology to enhance productivity, and changing how and where work is performed, including the expanded use of global centers," vice chairman Mark Nelson said in a statement.
State of play: The move comes as oil prices remain healthy but have fallen from levels seen in 2022 after Russia invaded Ukraine and 2023 as well.
- Chevron is boosting production in areas including the Permian Basin and Kazakhstan.
- But Chevron is also facing uncertainty, with its blockbuster acquisition of Hess caught up in a dispute with Exxon over Hess assets in Guyana.
The bottom line: The cuts show how the industry is preparing for an uncertain price and demand future, even as global thirst for its core products keeps rising.
- It also comes as oil companies are becoming more efficient. Bloomberg notes that rival Exxon "has cut its global workforce by 17% since 2019 even as production boomed."
- Oil analyst Paul Sankey tells the FT that Chevron's steep job cuts are surprising but also a "proactive move" and not a "crisis action."
