Oil giant Chevron has announced plans to cut 15-20% of its global workforce as part of a major restructuring effort aimed at achieving $3 billion in cost savings by 2026.
With approximately 40,000 employees across its operations, the cuts could affect up to 8,000 workers worldwide.
The reductions will primarily impact operational staff, with over half of the affected workforce based in the United States.
Employees will have the option to accept buyouts or resign with severance packages between now and April or May.
Chevron Vice Chairman Mark Nelson commented: “Chevron is taking action to simplify our organisational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness. We do not take these actions lightly and will support our employees through the transition.”
In the UK, Chevron’s presence is limited, but includes a 19.4% stake in the Clair Field. The company has already announced plans to sell these assets, marking its exit from the North Sea after more than 55 years. The sale would include Chevron’s interests in the Sullom Voe oil terminal and stakes in the Ninian and SIRGE pipeline systems.
The workforce reductions come as Chevron faces challenges including weak refining margins and delays in its Kazakhstan operations. The company is also dealing with complications in its proposed $53 billion acquisition of oil producer Hess.
The layoffs will begin in 2025, with most cuts completed before the end of 20263. The restructuring includes plans for a new leadership structure to be announced in the coming weeks.
