Chevron, one of the world’s largest energy companies, has announced plans to reduce its workforce by 15 to 20 percent as part of a strategic restructuring effort aimed at cutting costs and positioning itself for long-term sustainability. The oil giant confirmed on Wednesday that the layoffs will begin in 2025 and are expected to be largely completed by the end of 2026.
The decision follows Chevron’s commitment to eliminating $2 to $3 billion in “targeted structural costs” by the close of next year. The move is set to affect thousands of employees across various departments, marking one of the most significant workforce reductions in the company’s recent history. With approximately 39,800 employees at the end of 2024, not including service station staff, the planned layoffs could impact a substantial portion of its global workforce.
“We do not take these actions lightly and will support our employees through the transition,” said Chevron Vice Chairman Mark Nelson. “But responsible leadership requires taking these steps to improve the long-term competitiveness of our company for our people, our shareholders, and our communities.”
The restructuring announcement comes at a time when Chevron is navigating a complex economic landscape marked by fluctuating oil prices and increased shareholder expectations. Despite posting $17.7 billion in annual profits last month—a 17 percent drop from 2023—the company has continued to prioritize returning capital to investors. In 2024 alone, Chevron distributed a record $27 billion to shareholders through stock buybacks and dividend payments.
Industry analysts view the cost-cutting measures as a necessary response to evolving market conditions. Energy companies worldwide are under mounting pressure to streamline operations while maintaining profitability, especially as global energy transitions and regulatory challenges reshape the industry.
The announcement had an immediate impact on Chevron’s stock, with shares dipping 1.4 percent in early afternoon trading. However, executives remain optimistic that the restructuring will allow the company to operate more efficiently and strengthen its market position in the long run.
“Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness,” Nelson reiterated.
The workforce reduction underscores the oil giant’s broader strategy to remain resilient in an unpredictable energy market. As the industry faces increasing volatility, Chevron’s aggressive restructuring plan signals its determination to stay ahead of the curve and sustain profitability for years to come.
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