FILE PHOTO: A Chevron gas station is seen in Austin, Texas, U.S., October 23, 2023.
Brian Snyder | Reuters
Chevron will slash 15% to 20% of its workforce as the oil major implements a plan to lower costs, the company announced Wednesday.
The layoffs will begin this year with most of the cuts complete before the end of 2026. Chevron is looking to reduce costs by between $2 billion and $3 billion by the end of next year, according to Chevron.
“We do not take these actions lightly and will support our employees through the transition,” Chevron Vice Chairman Mark Nelson said in a statement. “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 shares were trading about 1% lower Wednesday. The stock is up roughly 8% this year.
The company missed Wall Street’s fourth-quarter earnings expectations, as its fuel business posted a loss of $248 million compared with a profit of $1.15 billion in prior year, as refining margins have fallen.
Its pending $53 billion acquisition of Hess Corp. is also tied up in arbitration with competitor Exxon Mobil, creating uncertainty about whether the deal will close.
