Chevron will fire 15% to 20% of its global workforce as it seeks to cut costs and simplify its business, the US oil company said on Wednesday.
Chevron is involved in a judicial battle with rival Exxon Mobil related to its planned acquisition of oil producer Hess, fundamental to its plans to increase oil production. At the same time, the company faces weak margins in its refining business, which reported the fourth quarter for the first time since 2020.
Laywriting occurs at a time when the company says it aims at costs of $ 3 billion in costs by 2026, from the use of technology, the sale of assets and the change of how and where the work is performed.
In late 2023, Chevron employed 40,212 people in its operations. A 20% resignation of total employees would affect around 8,000 people.
Chevron shares fell 0.7% in the afternoon negotiations.
The company told employees that they can choose voluntary termination until April or May, according to a source familiar with the matter.
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Chevron will reorganize its business and announce a new leadership organogram in the next two weeks, the source said.
“Chevron is taking steps to simplify our organizational structure, have a faster and more effective execution, and position the company for stronger long-term competitiveness,” Chevron vice president Mark Nelson said in a statement. “We do not take these measures lightly and we will support our employees during the transition.”
