The oil giant Chevron Corporation will lay off up to 8,000 workers by the year 2026 to reduce costs.
The 40,000 strong global workforce will lose between 15% and 20%.
Mark Nelson, vice-chairman of the company, said: “Chevron takes action to simplify its organisational structure and execute faster and more efficiently. This will position the firm for greater long-term competition.”
We will support our staff through this transition. Responsible leadership means taking these measures to improve our company’s long-term competitiveness for our employees, shareholders and communities.
The company stated that it aimed to save up to $3bn by 2026 through the use of technology, asset sales, and changing where and how work was done.
Refining is concerned about the potential for oil price pressure in the coming years, as global production continues to grow faster than demand. The oil industry has become more focused on mergers, operational efficiency and less on drilling new wells.
The US oil and gas industry has seen a sharp decline in employment over the last decade, despite the fact that production continues to grow.
Chevron is also facing some production issues, such as cost overruns or delays in a major Kazakhstan oilfield project. The company’s reserves of oil and gas have fallen to their lowest level in at least 10 years, raising concern about its future prospects.
Last year, the company relocated its headquarters from San Ramon in California to Houston and replaced several longtime managers.
Chevron’s $53bn purchase of oil producer Hess has been put on hold due to a legal battle with Exxon Mobil. Exxon Mobil has aggressively increased its own production.
It announced that it would be opening a technology hub in India, which will be the largest outside of the US.
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