Chevron has announced plans to significantly reduce its workforce, targeting a 15–20% reduction by next year as part of its cost-cutting strategy.
This move could affect up to 9,000 employees globally as the company seeks to reduce structural costs by $2bn–3bn by 2026, according to a report by Bloomberg.
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Chevron, which employed 46,500 people at the end of 2023, recently relocated its headquarters from San Ramon, California, to Houston, Texas.
Chevron vice-chairman Mark Nelson said: “Chevron is taking action to simplify our organisational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness.”
The job cuts add pressure on US oil and gas employment, which is still around 10% below pre-pandemic levels despite rising domestic production.
Mergers, improved drilling efficiency and a focus on profitability over production growth have contributed to staff reductions.
ExxonMobil has reduced its global workforce by 17% since 2019, outperforming Chevron’s stock over the past three years, the report said.
Chevron, however, has seen growth from the Permian Basin and the start-up of its Tengiz development in Kazakhstan.
CEO Mike Wirth has highlighted the company’s focus on cash flow harvesting and modest spending on new projects, potentially reducing the need for staff.
Future growth is expected from Chevron’s $53bn acquisition of Hess, which has a 30% stake in Exxon’s Guyana discovery.
“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,” Wirth stated.
Chevron reported Q4 earnings that were below expectations due to weak refining margins, marking the first loss in this segment in four years.
Wirth noted that the post-pandemic surge in fuel margins has ended, with a continued downtrend expected this year.
