Chevron will lay off 15% to 20% of its global workforce by the end of 2026, as it seeks to cut costs and simplify its business, the oil company said Wednesday.
Chevron is embroiled in a court battle with rival Exxon Mobil over its planned acquisition of oil producer Hess, which is the cornerstone of its plans for increasing oil production.
At the same time, the company is facing weak margins in its refining business, which reported a loss in the fourth quarter for the first time since 2020.
The layoffs come as the company has said it is targeting $3 billion in cost cuts through 2026 from leveraging technology, asset sales and changing how and where work is performed.
At the end of 2023, Chevron employed 40,212 people across its operations.
A layoff of 20% of total employees would be about 8,000 people.
Shares of Chevron declined about 1% in afternoon trading.
The company told employees they can begin opting for buyouts now through April or May, according to a source familiar with the matter.
Chevron will reorganize its business and announce a new leadership organizational chart in the next two weeks, the source said.
“Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness,” said Mark Nelson, vice chairman of Chevron, in a statement. “We do not take these actions lightly and will support our employees through the transition.”
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
