Chevron said it will lay off 15 percent to 20 percent of its global workforce by the end of 2026 as part of a cost-cutting initiative aimed at simplifying its business.
The U.S. oil company announced the move on Wednesday as it continues to face challenges, including a legal battle with Exxon Mobil over its planned acquisition of Hess, a key component of its oil production strategy. Additionally, Chevron is grappling with weak refining margins, which resulted in a fourth-quarter loss for the first time since 2020.
The company has set a target of $3 billion in cost reductions through 2026, achieved through leveraging technology, asset sales, and operational restructuring. With 40,212 employees at the end of 2023, a 20 percent reduction could affect about 8,000 workers. Employees have been given the option to take voluntary buyouts, with decisions expected by April or May, according to sources.
Chevron plans to announce a new leadership structure within two weeks as part of its reorganization. Vice Chairman Mark Nelson stated that the company aims to enhance efficiency and long-term competitiveness while supporting employees through the transition.