Chevron to cut 15-20% of workforce by end of 2026: company

Chevron will cut 15 to 20 percent of its workforce as part of a reorganization to save money and to position the oil giant for the long-term, the company said Wednesday.

The job cuts will begin in 2025 and be mostly complete by the end of 2026, Chevron said in a statement to AFP. The moves are in line with a previous company pledge to remove $2 to $3 billion in "targeted structural costs" by the end of next year.

The move is expected to reduce headcount by thousands. Chevron employed 39,800 at the end of 2024, not counting service-station employees.

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"Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness," said a statement from Chevron Vice Chairman Mark Nelson.

"We do not take these actions lightly and will support our employees through the transition," Nelson said. "But responsible leadership requires taking these steps to improve the long-term competitiveness of our company for our people, our shareholders and our communities."

The announcement comes after Chevron last month reported annual profits of $17.7 billion, down 17 percent from 2023. The company returned a record $27 billion last year to shareholders in share repurchases and dividends.

Shares of Chevron fell 1.4 percent in early afternoon trading.