Chevron Will Lay Off Up To 20% Of Employees—Impacting Up To 9,100
ForbesFeb 13
Chevron to Cut 20% of Workforce in Major Restructuring
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Above: A Chevron gas stationed that burned during the Eaton fire is seen in the Altadena area of LA county, CA on Jan. 21, 2025. Image copyright: Josh Edelson/Contributor/AFP via Getty Images
The Facts
US oil giant the Chevron Corporation on Wednesday announced plans to reduce its global workforce by 15%-20% by the end of 2026, potentially affecting up to 9K employees, as part of a broader initiative to achieve cost savings of $3B.
Company vice chairman Mark Nelson stated the changes "will improve standardization, centralization, efficiency and results.” Chevron recently relocated its headquarters from San Ramon, California to Houston.
Chevron's decision comes amid production challenges, including cost overruns in Kazakhstan, while its $53B Hess acquisition faces uncertainty due to an ongoing legal dispute with ExxonMobil over operations in Guyana.
The Spin
Pro-establishment narrative
Facing headwinds of declining earnings forecasts and lagging performance behind competitors, Chevron's workforce reduction is a strategic necessity. This difficult but calculated move aims to sharpen operational efficiency and secure long-term growth.
Establishment-critical narrative
Bottom 5% layoffs are a flawed and desperate move that damage a company's viability in the long run. Creating a climate of fear, in which employees cannot trust the security of their employers, results in a worse overall performance from workers for the sake of appearing to take commercial action.
