Chevron will lay off 15-20% of its global workforce by the end of 2026, the US oil company said on Wednesday as it seeks to cut costs, simplify its business and complete a major acquisition.
Chevron also faces industry-wide weakness in the refining business and the expectation that oil prices could be under pressure over the next two years as global production growth outpaces demand.
“Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness,” said Mark Nelson, vice-chairperson of Chevron, in a statement.
No 2 US oil firm aims for $3bn in cost cuts through 2026 and seeks to simplify business after production challenges.
Its $53bn deal to acquire oil producer Hess and gain a foothold in Guyana’s lucrative oilfield is in limbo due to a court battle with larger rival Exxon Mobil, which has more aggressively expanded its own production.
