Chevron will slash up to 20% of its workforce as part of cost-cutting plan

Chevron will slash up to 20% of its workforce as the oil major implements a plan to cut costs by up to $3 billion, the company said Wednesday.

The workforce reductions will begin this year with most of the cuts complete before the end of 2026, according to Chevron.

″We do not take these actions lightly and will support our employees through the transition,” Chevron Vice Chairman Mark Nelson said in a statement. “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 the full statement from Chevron:

“Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness. This work includes optimizing the portfolio, leveraging technology to enhance productivity, and changing how and where work is performed, including the expanded use of global centers. We believe changes to the organizational structure will improve standardization, centralization, efficiency and results, unlocking new growth potential and helping Chevron drive industry-leading performance now and into the future. 

We expect these actions to result in workforce reductions of 15 to 20 percent, beginning in 2025 with most complete before the end of 2026. These reductions are in line with our previous announcement of $2 to $3 billion in targeted structural cost reductions by the end of 2026, with some residual impact in 2027 and beyond. 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.”