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Chevron said it will be the fifth-largest cut in the world’s workforce by the end of 2026 as part of a cost-cutting drive designed to simplify the oil major business and drive growth.
Vice-Chair Mark Nelson said the changes will include optimizing a huge $2800 billion portfolio, leveraging technology to increase productivity and changing the way and where jobs are performed. I did.
“We expect these actions to be the most complete by the end of 2025 and lead to 15-20% workforce cuts starting in 2025,” Nelson said.
Chevron’s deep cost-cutting plan calls on President Donald Trump to call on producers to “drills, babes, drills” and create another oil boom that could push down energy prices.
The plan was signalled when Chevron said it would target between $2 billion and $3 billion with targeted “structural” cost reductions from asset sales, technology use and workflow changes. I did. It follows the relocation of headquarters from San Ramon, California to Houston, Texas last month.
At the end of 2023, Chevron had around 46,000 employees, according to the annual report.
The workforce cuts follow the publication of the disappointing fourth quarter results last month. The group reported adjusted earnings of $2.06 per share, which was below Wall Street estimates of $2.11.
“I’m not going to call it a perfect storm, but it was a quarter where everything went in a single direction and it was a negative direction.”
Oil analyst Paul Sankey said the sudden cuts in Chevron’s personnel are surprising, but it reflects “active moves” by the company rather than “crisis action.” Chevron was unable to grow oil production in a further rush as it accelerated two major expansions in the Permian Basin in the United States and Tengis in Kazakhstan, he said.
Sankey said Chevron is also banking the growth of Hess, the US oil company operating in Guyana, as well as the $53 billion acquisition. Exxon began arbitration proceedings and delayed the closing of the transaction.
Chevron shares fell 1.5%, following the announcement on Wednesday.
Analysts said the oil industry is being readjusted following Bumper’s profits in 2022 and 2023 after Russia’s full-scale invasion of Ukraine prompted a surge in prices.
Currently, Brent’s crude oil prices averaged $74 per barrel in 2025 and $66 per barrel in 2026, with a easing of $66 from last year’s $81. According to To the US Energy Information Agency.
Exxonmobil, the largest oil company in the West, reiterated its goal last month to achieve cumulative savings of $18 billion by the end of 2030.
