Chevron to Cut 20% of Workforce Amid Major Cost-Cutting Plan

San Ramon, California — Chevron Corporation announced Wednesday that it will reduce its workforce by up to 20% as part of a significant cost-cutting initiative. The job cuts, which aim to save between $2 billion and $3 billion by the end of 2024, will begin this year and are expected to be largely completed by the end of 2026.

Mark Nelson, Chevron’s Vice Chairman, emphasized the difficult nature of this decision in a statement. “We do not take these actions lightly and will support our employees through the transition,” said Nelson. “But responsible leadership requires taking these steps to improve the long-term competitiveness of our company for our people, our shareholders, and our communities.”

The announcement comes at a time when Chevron, like many other oil and gas companies, is under pressure to manage costs amidst fluctuating oil prices. As a response to these market conditions, the company is restructuring its operations to enhance efficiency.

Chevron’s shares were noted to be trading around 1% lower following the announcement, indicating market reaction to the anticipated job losses.

In recent years, the oil industry has faced increased scrutiny regarding its labor practices and cost management, with many companies seeking to streamline operations as energy demand shifts and sustainability concerns grow.

The company has provided reassurances that it will assist affected employees during the transition period, though specific support measures were not detailed.

This announcement is part of a broader trend within the oil sector, where several major players are adjusting staffing levels and operations to maintain profitability in an ever-changing market landscape. Chevron remains committed to its investments in technology and innovation as it navigates these challenges.