Chevron, the American oil and gas giant, revealed its intention to reduce its workforce by 15% to 20% by the end of 2026 as part of a restructuring effort aimed at simplifying its organization and improving operational efficiency. This decision is part of a broader cost-reduction plan expected to save the company between $2 and $3 billion.
Optimization of Operations and Cost Reduction
Mark Nelson, Chevron’s Vice President of the Board, emphasized that the restructuring aims to make the company “faster and more efficient” while strengthening its position against growing industry competition. According to Nelson, these changes will unlock new growth potential for Chevron by optimizing its portfolio and leveraging technology to improve productivity.
A Reorganization Focused on Global Centers
Additionally, Chevron highlighted the increased use of “global centers,” a key aspect of the new organization, which is designed to modify the company’s approach to resource allocation, both human and geographical. This optimization will be accompanied by a substantial reduction in workforce, with the majority of job cuts expected by 2026.
Impact on Workforce and Geographical Distribution
The company, which employed 45,298 people at the end of 2024, anticipates that the changes will affect around 7,000 to 9,000 positions, primarily in administrative roles and areas not directly related to operations. Currently, about half of Chevron’s employees are located in the United States, and the company has indicated that most of the reductions will occur in its central offices and in regions with lower profitability.
Future Growth and Acquisition Prospects
Despite the reduction in workforce, Chevron remains optimistic about its ability to sustain growth. In 2024, the company posted a revenue of $202.8 billion, a slight increase of 0.9% compared to the previous year, although its results were impacted by lower refining margins. Chevron’s production has increased, notably due to the integration of PDC Energy, an American company acquired in 2023.
The company is also awaiting an arbitration decision concerning its $53 billion acquisition of the oil company Hess, a deal that has sparked a legal dispute with ExxonMobil. The outcome of this transaction could influence Chevron’s future growth prospects.
