Chevron has announced plans to cut up to 9,000 jobs—approximately 15 to 20 percent of its global workforce—as part of a broader strategy to reduce operating expenses and improve efficiency, the Washington Post reports.
The layoffs, set to begin this year and continue through 2026, are a key component of an initiative the company introduced in December to streamline operations and cut billions in costs.
Chevron Vice Chairman Mark Nelson emphasized that while the decision to reduce staff was difficult, it is necessary to ensure the company’s long-term competitiveness.
“We do not take these actions lightly and will support our employees through the transition,” Nelson stated. “But responsible leadership requires taking these steps to improve the long-term competitiveness of our company.”
Despite achieving record oil production in 2023, Chevron’s profits have been impacted by declining refining margins. In the fourth quarter of 2024, the company’s fuel business posted a loss for the first time since 2020. These financial pressures align with broader industry trends, as ExxonMobil, the largest US oil producer, also reported lower annual profits.
Chevron has steadily reduced its workforce over the past decade, with employee numbers declining from 65,000 in 2013 to about 46,000 by the end of 2023, according to SEC filings. The company is now looking to technology as a means of improving efficiency.
Chief Financial Officer Eimear Bonner told investors that Chevron aims to leverage robotics, drones, artificial intelligence, and other advanced technologies to “do work completely differently” and reduce costs.
Following the announcement, Chevron’s stock declined by more than 1.5 percent on Wednesday. However, analysts note that the restructuring could position the company for long-term financial stability, especially as the oil and gas industry faces evolving economic and regulatory conditions.
