Chevron laid off up to 20% of the world’s workforce
Ernest Shader and Sheila Dan
HOUSTON (Reuters) – Chevron fires 15% to 20% of the global workforce by the end of 2026, and US oil companies will cut costs, simplify operations and complete major acquisitions on Wednesday He said that
Second US oil producers face production challenges, including cost overruns and delays on large-scale Kazakh oilfield projects.
Meanwhile, the $53 billion deal to acquire oil producer Hess and scaffold in Guyana’s lucrative oil fields is a result of a court battle with bigger rival Exxon Mobil, and it’s in production growth. It is located in Limbo as it surpassed the record production in Guyana and achieved the largest production. US oil fields.
Chevron says it aims to cut costs by up to $3 billion by 2026, thanks to changes in technology, asset sales and how and where work is performed.
At the end of 2023, Chevron employed 40,212 people across its operations. The layoff for 20% of total employees is approximately 8,000. These figures rule out approximately 5,400 employees at Chevron Service Station.
Weak margins in gasoline and diesel production also hurt Chevron’s fourth quarter revenues. The refining business was the first loss since 2020, putting pressure on CEO Mike Worth.
Chevron shares fell 1.3% in afternoon trading. The broader S&P 500 Energy Sector Index fell 2.4%. Chevron’s shares have grown 5.6% since the start of the year.
“Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position businesses for a stronger competitive edge,” said Mark Nelson, vice chairman of Chevron. We support our employees through transition.”
The company told employees at the Internal City Hall that they could now choose to shop by April or May, according to sources familiar with the issue.
Chevron will restructure its business and announce a new leadership structure over the next two weeks, sources said.
The oil industry has been consolidated in recent years, focusing on mergers and operational efficiency rather than drilling new wells.
No. 1 US oil company Exxon bought Pioneer natural resources last year and became the largest producer in the Permian Basin. Exxon also has the largest stake in Guyana Oil Joint Venture, which has discovered over 11 billion barrels of oil.
If Chevron fails to terminate the acquisition of Hess, slipping through Wirth’s fingers will be his second deal. In 2019, Chevron waived its bid to buy the Anadarko Petroleum Corp after Occidental Petroleum raised its offer.