Chevron Layoffs: Oil & Gas Giant To Fire 15 To 20% Of Employees By THIS Year
Chevron Layoffs: The oil and gas firm, Chevron announced on Wednesday that it plans to lay off 15 to 20 per cent of its global workforce by the end of 2026. The move is part of the US oil giant's strategy to reduce costs, streamline operations, and finalise a major acquisition. The US oil producer has encountered production challenges, including cost overruns and delays in a significant oilfield project in Kazakhstan. Additionally, its $53 billion deal to acquire Hess and expand its presence in Guyana's lucrative oilfields is currently in trouble due to a legal dispute with larger rival Exxon Mobil, which has outpaced Chevron with strong production growth, including record output in Guyana and the largest oilfield in the US, according to a Reuters report. Chevron has set a goal to reduce costs by up to $3 billion by 2026, focusing on technology, asset sales, and rethinking how and where work is carried out. By the end of 2023, Chevron employed 40,212 people across its operations. A 20 per cent reduction in its workforce would mean approximately 8,000 job cuts. This figure excludes around 5,400 employees at Chevron service stations, states the report. Chevron's fourth-quarter earnings were also impacted by weak margins in gasoline and diesel production, as its refining business reported a loss for the first time since 2020, putting additional pressure on CEO Mike Wirth. “Chevron is taking action to simplify our organisational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness. We do not take these actions lightly and will support our employees through the transition,” said Mark Nelson, vice chairman of Chevron, in a statement, as per the report. Chevron informed employees during an internal town hall that they can begin opting for buyouts, with the window open until April or May, according to the report citing sources familiar with the situation. The company also plans to reorganise its operations and unveil a new leadership structure within the next two weeks, it added. Also Read: Jeff Bezos' Blue Origin Set For Major Job Cuts After Rapid Expansion, Says Report. Check Details Here
Chevron Layoffs: The oil and gas firm, Chevron announced on Wednesday that it plans to lay off 15 to 20 per cent of its global workforce by the end of 2026. The move is part of the US oil giant's strategy to reduce costs, streamline operations, and finalise a major acquisition.
The US oil producer has encountered production challenges, including cost overruns and delays in a significant oilfield project in Kazakhstan. Additionally, its $53 billion deal to acquire Hess and expand its presence in Guyana's lucrative oilfields is currently in trouble due to a legal dispute with larger rival Exxon Mobil, which has outpaced Chevron with strong production growth, including record output in Guyana and the largest oilfield in the US, according to a Reuters report.
Chevron has set a goal to reduce costs by up to $3 billion by 2026, focusing on technology, asset sales, and rethinking how and where work is carried out. By the end of 2023, Chevron employed 40,212 people across its operations. A 20 per cent reduction in its workforce would mean approximately 8,000 job cuts. This figure excludes around 5,400 employees at Chevron service stations, states the report.
Chevron's fourth-quarter earnings were also impacted by weak margins in gasoline and diesel production, as its refining business reported a loss for the first time since 2020, putting additional pressure on CEO Mike Wirth.
“Chevron is taking action to simplify our organisational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness. We do not take these actions lightly and will support our employees through the transition,” said Mark Nelson, vice chairman of Chevron, in a statement, as per the report.
Chevron informed employees during an internal town hall that they can begin opting for buyouts, with the window open until April or May, according to the report citing sources familiar with the situation. The company also plans to reorganise its operations and unveil a new leadership structure within the next two weeks, it added.
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