Chevron to reduce up to 20 % of its workforce

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Chevron said it would reduce up to five global workers by the end of 2026 as part of a maximum cost engine designed to simplify the main oil business and enhance growth.

Vice President Mark Nelson said that the changes will include improving the vast group of the group of $ 280 billion, using technology to enhance productivity and change how to perform work.

“We expect these measures to lead to discounts in the workforce from 15 to 20 percent, starting in 2025 with more complete before the end of 2026,” Nelson said.

Deep cost reduction plans by Chevron Come despite President Donald Trump’s invitation to the producers to “potholes, children, drilling” and generate another oil A boom can pay energy prices.

The plans were referred to in November when Chevron said it would target $ 2 billion-3 billion dollars in the targeted “structural” cost savings of asset sales, technology use and workflow changes. The company is transferred to its headquarters last month from Saint Ramon, California, to Houston, Texas.

Chevron had about 46,000 employees, including those working at gasoline stations, at the end of 2023, according to its annual report.

The workforce discounts follow the publication of the results of the disappointing fourth quarter of hopes last month, with the low performance of the weak margins in the refinery work. The group has reported a modified profit of $ 2.06 per share, which was less than Wall Street estimates of $ 2.11.

“I will not call it the ideal storm, but it was a quarter as there were many things that all went in one direction, and it was a negative direction,” CEO Mike Worth told analysts. .

Paul Sanky, an oil analyst, said that the sharp cuts in Chevron in the number of employees were a surprise, but it reflects a “proactive step” by the company, instead of “making the crisis.” He said that Chevron was not in a hurry to increase oil production because it accelerated two large expansions in the Bermean Basin in the United States and was accompanied by Kazakhstan.

Sanky said that Chevron was also working to grow from her acquisition of $ 53 billion, an American oil company with operations in Guyana. Exxon has Arbitration procedures launchedDelay the closure of the deal.

Chevron shares decreased by 1.5 percent after Wednesday’s announcement.

Analysts said that the oil industry was reseting after the profits of the abundance in 2022 and 2023 after it prompted Russia’s extensive invasion of Ukraine to an increase in prices.

There is now moderate with raw price Brent prices to $ 74 a barrel in 2025 and $ 66 a barrel in 2026, a decrease from $ 81 a barrel last year, According to To the US Energy Information Management.

Execunmopyl, the largest western oil company, repeated its goal to achieve $ 18 billion in cumulative savings until the end of 2030 against 2019.