Chevron to Cut 15-20% of Workforce in Cost-Saving Move
Chevron has announced plans to reduce its workforce by 15 to 20 per cent as part of a reorganisation aimed at saving money and positioning the company for long-term success.
The oil giant stated that the layoffs would commence in 2025 and be largely completed by the end of 2026. This move aligns with Chevron’s previous commitment to eliminate $2 to $3 billion in targeted structural costs by the end of next year.
The restructuring is expected to lead to a significant decrease in the number of employees. As of the end of 2024, Chevron had a workforce of 39,800 excluding service station employees.
Mark Nelson, Vice Chairman of Chevron, explained, “Chevron is taking action to simplify our organisational structure, operate more efficiently, and position the company for greater long-term competitiveness.”
Nelson added, “We understand the gravity of these decisions and will provide support to our employees during this transition. However, as responsible leaders, we must take these steps to enhance the long-term competitiveness of our company for the benefit of our employees, shareholders, and communities.”
This announcement comes on the heels of Chevron reporting $17.7 billion in annual profits last month, a 17% decline from the previous year. In 2024, the company returned a record $27 billion to shareholders through share buybacks and dividends.
Following the news, Chevron’s shares dropped by 1.4% in early afternoon trading.
