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Chevron to Cut Up to 20% of Workforce in Cost-Saving Overhaul

The oil giant plans to reduce up to 9,100 jobs by 2026, aiming to save $3 billion and streamline operations after relocating its headquarters to Houston.

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File photo: Chevron, the global oil giant that recently moved its headquarters to Houston, announced it will lay off between 15 and 20% of its global workforce by 2026.
Chevron plans to lay off 15% to 20% of its global workforce to cut $3 billion in costs by 2026, according to an internal memo released Wednesday. 

Overview

  • Chevron announced plans to reduce its global workforce by 15% to 20%, impacting up to 9,100 employees, with most layoffs expected to be completed by the end of 2026.
  • The company aims to cut $2 billion to $3 billion in costs by simplifying its organizational structure, leveraging technology, and centralizing operations, including expanding its use of global centers like one in India.
  • The layoffs follow Chevron's relocation of its corporate headquarters from California to Houston in 2024, though the company has not specified how many Houston or California employees will be affected.
  • Chevron's $53 billion acquisition of Hess is currently delayed due to a legal challenge from Exxon Mobil, while the company faces production challenges and declining oil reserves.
  • Despite record oil production in 2024, Chevron's profits have declined, with fourth-quarter losses in its refining business and a 17% drop in annual net income compared to 2023.