Chevron to Cut 15-20% of Its Workforce

Chevron will reduce its global workforce by 15% to 20% by the end of 2026 as part of a broader effort to cut costs, simplify operations, and finalize a major acquisition. The announcement follows production challenges and a court battle over its US$53 billion deal to acquire Hess Corporation. 

At the end of 2023, Chevron employed 40,212 people. A workforce reduction of 20% would mean approximately 8,000 layoffs, excluding the 5,400 employees at Chevron service stations. The company has set a cost-cutting target of up to US$3 billion by 2026 through technological improvements, asset sales, and restructuring work processes. Employees were informed during an internal town hall that they could opt for buyouts until April or May, according to a source familiar with the matter.  

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

Chevron has faced operational setbacks, including cost overruns and delays in Kazakhstan's Tengiz oilfield project. Additionally, its efforts to establish a presence in Guyana's offshore oil fields through the Hess acquisition are on hold due to a dispute with ExxonMobil, which holds a controlling stake in the region.  

The oil industry has increasingly focused on mergers and operational efficiencies rather than new drilling, explains Reuters. ExxonMobil, Chevron’s biggest competitor, acquired Pioneer Natural Resources last year, strengthening its position as the top producer in the Permian Basin. If Chevron fails to complete the Hess acquisition, it would be the second major deal to fall through under CEO Mike Wirth’s leadership, following its unsuccessful bid for Anadarko Petroleum in 2019.