Chevron plans to eliminate 15 to 20 per cent of its personnel as part of a reorganisation to save money and position the oil giant for the long run, the company announced Wednesday.
The oil giant said in a statement to AFP that employment losses would begin in 2025 and be substantially completed by the end of 2026. The actions are consistent with the company’s previous vow to eliminate $2 to $3 billion in “targeted structural costs” by the end of next year.
The change is expected to result in a significant reduction in headcount. Chevron employed 39,800 people at the end of 2024, not including service station staff.
“Chevron is taking action to simplify our organisational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness,” Chevron Vice Chairman Mark Nelson said in a statement.
“We do not take these actions lightly and will support our employees through the transition. But responsible leadership requires taking these steps to improve the long-term competitiveness of our company for our people, our shareholders, and our communities,” Nelson said.
The announcement comes after Chevron announced $17.7 billion in annual profits last month, a 17% decrease from 2023. Last year, the corporation returned a record $27 billion to stockholders through share repurchases and dividend payments.
Chevron shares dipped 1.4% in early afternoon trading.
