Chevron to cut as much as 20% of workforce

Chevron plans to slash its workforce by as much as 20% by the end of 2026, as it embarks on a wider cost-cutting effort.

The company said the reductions would simplify its structure and enable it to act faster, better positioning the firm for long-term growth.

The oil giant employed more than 45,000 people at the end of 2023, roughly half of them in the US.

Chevron did not provide further detail about where the cuts would fall.

The company said last month it was looking to sell some of its assets and expand the use of robots in its operations, as part of a push to find $2bn to $3bn in savings.

It has also cut back capital spending, even as overall production is expected to grow 6% annually over the next two years thanks to new wells in countries such as Kazakhstan.

Separately the firm has seen its effort to acquire oil producer Hess stall, amid a legal battle with rival Exxon.

Employment in the oil and gas sector in the US has fallen sharply over the last decade, even as production continues to expand.

Recent years have seen a wave of mergers, as companies try to avoid the rush to growth that led to bursts of oil and gas supply and hits to profit in the past.

Mark Nelson, vice chairman of Chevron Corp, said the company believed changes to the organisational structure would “improve standardization, centralization, efficiency and results”.

” 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.”

Chevron said the cuts of 15% to 20% would start this year and go through 2026.

Staff at service stations accounted for more than 5,000 of the roughly 45,000 people the company employed at the end of 2023.