Chevron trimming headcount by 15-20% in layoffs

Chevron is seeking to trim its headcount by a sizable amount.

The energy giant will lay off 15%-20% of its workers in a bid to “simplify our organizational structure, [execute] faster and more efficiently, and position the company for stronger long-term competitiveness,” Chevron Corp. Vice Chair Mark Nelson said in a Wednesday statement.

Chevron’s global headcount at the end of 2023 consisted of more than 40,200 non-service station employees and nearly 5,400 service station workers, according to its most recent annual report.

Nelson said the company will finish “most” of the layoffs, which start this year, before 2026’s year-end. 

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“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,” the Chevron vice chair wrote.

The energy giant aims to shrink its structural costs through layoffs and other actions by $2-$3 billion before 2027, according to Nelson.

CFO Eimear Bonner said in November, when the company released its third-quarter financial results, that Chevron aimed to achieve that level of savings. She indicated the company would give updates on its efforts “through 2025.”

According to Nelson’s statement, the energy giant is “optimizing its portfolio, leveraging technology to enhance productivity, and changing how and where work is performed, including the expanded use of global centers.”

He said the organization structure changes that Chevron is making will “improve standardization, centralization, efficiency and results, unlocking new growth potential and helping Chevron drive industry-leading performance now and into the future.”

The news comes nearly two weeks after the energy giant disclosed its fourth-quarter earnings.

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Chevron generated $52.2 billion in total revenues and nearly $3.24 billion in net income in the fourth quarter. Over the entirety of 2024, the company saw revenues of $202.79 billion and net income of $17.66 billion, with the latter of the two figures marking a 17.35% drop year over year. 

The company’s global net oil-equivalent production posted a 7% increase year over year. 

CEO Mike Wirth said last month the company is “in a strong position today, with near-term catalysts that are expected to drive the company to even better performance in 2025 and 2026.”