Chevron reaches up to 20 % of the global workforce

Written by Ernest Shater and Sheila Dang

The American Oil Company said on Wednesday, which is seeking to reduce costs, simplify its business and complete a major acquisition that Houston (Reuters) -Chevron will launch from 15 % to 20 % of the global workforce by the end of 2026.

The US oil product No. 2 faced production challenges, including costs and delay in the Grand Kazakhstan oil field project.

Meanwhile, its $ 53 billion deal to acquire the oil product of Hess and obtain a foothold in the profitable oil field in Guena in a state of forgetfulness due to a tight battle with the competition The oil field in the United States.

Chevron said it targets up to 3 billion dollars in costs until 2026 of technology and asset sales and change how work is carried out.

At the end of 2023, Chevron worked 40,212 people in its operations. The layoff of 20 % of the total employees will be about 8,000 people. These numbers exclude about 5,400 employees at Chevron Service Stations.

The weak margins in gasoline and diesel production also affected Chevron’s profits in the fourth quarter, where the refining work recorded a loss for the first time since 2020, which increased pressure on CEO Mike Worth.

Chevron shares decreased by 1.3 % in the afternoon trading. The broader energy sector index has decreased by 2.4 %. Chevron shares increased by 5.6 % on an annual basis.

“Chevron is taking measures to simplify our organizational structure, implement it faster and more effective, and put the company for the long -term competitiveness. We do not take these measures lightly. It will support our employees through the transition,” Mark Nelson, Vice President of Chevron, said in a statement. “

The company told employees during an internal municipal hall that they could start choosing acquisitions now until April or May, according to a source familiar with the matter.

The source said that Chevron will reorganize its business and announce a new leadership structure in the next two weeks.

The oil industry has been integrating in recent years, focusing on more operational integration and efficiency than new wells.

Exxon, the 1st company in the United States, bought Pioneer Natural Resources last year to become the largest product in the Permian Basin. Exxon also has the largest share in the joint Guyana Oil project, which has discovered more than 11 billion barrels of oil.

If Chevron fails to close the HESS acquisition, the second deal that passes through WIRT fingers will be. In 2019, Chevron abandoned an attempt to purchase the company Anadarko Petroleum Corp after it raised Occidental Petroleum.

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