Chevron Layoffs: Workforce Reduction of Up to 20%

Energy behemoth Chevron is telling a considerable number of employees they no longer have a job. To “simplify” its business structure and optimize efficiency, the company is laying off 15% to 20% of its workforce.

The majority of Chevron layoffs, which will begin in the coming months, will be completed by the end of 2026. The company intends to reduce costs by $2 billion to $3 billion through various strategies, including terminating employees, by 2027.

“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,” wrote Vice Chair Mark Nelson, per FOX Business.

The organizational changes Chevron is implementing will open up opportunities for growth and standardization across the whole company, improving efficiency and results in the future. According to the company, applying technology for enhanced productivity as well as expanding its global centers will change how and where work is done.

Currently, Chevron employs around 40,200 people worldwide, according to Reuters. A 20% cut in jobs means roughly 8,000 people will be laid off.

Chevron Earnings and Falling Reserves

In the last quarter of 2024, Chevron made $52.2 billion in revenue, with net income hitting $3.24 billion. Total revenue for the year was almost $203 billion. Most significantly, net income in 2024 dropped 17.35% to $17.66 billion compared to 2023.

“In 2024, we delivered record production, returned record cash to shareholders, and started up key growth projects,” said CEO Mike Wirth, per a press release. 

Among the “key growth” ventures, Chevron began its Anchor project in the Gulf of America (formerly Gulf of Mexico). The project uses “breakthrough” technology that can safely reach deep oil reserves up to 34,000 feet below sea level. The Anchor project could help Chevron with its declining oil and gas reserve replacement going forward.    

An important metric for energy companies is reserve replacement, which is a measure of how much oil and gas can be produced and for how long. Over the past decade, Chevron’s oil and gas reserves have fallen to record levels. In 2023, the company had 11.1 billion barrels of oil in reserve, but the number fell to 9.8 billion at the end of last year.

In August 2024, Chevron announced it was moving its headquarters from San Ramon, California, to Houston, Texas. Several high-level, long-time managers were also replaced.