Chevron to cut up to 20% of workforce as it slashes costs by as much as $3 billion

Feb. 12 (UPI) -- Chevron on Wednesday announced it will lay off 15-20% of its global workforce in an effort to reduce costs by up to $3 billion. Chevron expects to complete most of the cuts by the end of 2026.

Chevron Vice Chairman Mark Nelson said in a statement, "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."

According to Barron's, citing a top Chevron executive, 6,000-8,000 people will lose their jobs in a cost-cutting move and it's not an indication of bigger problems.

Chevron lost $248 million fourth-quarter 2024 compared with a profit of $1.15 billion in the 2023 fourth quarter.

And Chevron's $53 billion deal to buy Hess Corp. is in arbitration as Exxon Mobil competes with Chevron's purchase offer.

Chevron's stock was down by about 1% Wednesday.

The layoffs will start this year, and Chevron expects to complete the cost-cutting by the end of 2026.

The company indicated in November that cost-cutting layoffs were possible.

Chevron CEO Mike Wirth said in a Bloomberg interview that the cuts would be targeted structural cost savings that included potential asset sales.

"We're going to change where and how we do some of our work," Wirth said when asked about workforce cuts. "The center in India is an example of that. That does have implications on people because we're changing how work is done and where work is done."