Chevron to cut up to a fifth of global workforce by 2026 after poor financial results

Chevron

OIL GIANT Chevron has announced it will slash up to 8,000 jobs by the end of 2026, amounting to around a fifth of its global workforce.

The US company has said that between 15% and 20% of its 41,000 workers worldwide will be made redundant. Chevron’s approximately 5,000 petrol station workers will be unaffected by the cuts.

Job cuts have been anticipated since Chevron announced in November its goal to save between US$2bn and US$3bn through “structural” cost reductions.

Chevron’s poor financial performance has been exacerbated by delays in securing a US$53bn acquisition of Hess, which currently controls part of Guyana’s Stabroek Block, one of the most lucrative oil discoveries in recent decades. The deal has been held up by legal challenges from Chevron rival ExxonMobil.

According to the Financial Times, CEO Mike Wirth told analysts on a results call: “I’m not going to call it the perfect storm, but it was a quarter where there were a lot of things that all went in one direction, and it was a negative direction.”

Oil prices have been declining since they spiked on the back of the Russian invasion of Ukraine. Last year, prices were US$81/bbl but are expected to fall to US$74 this year and US$66 in 2026. Meanwhile, Chevron’s oil and gas reserves are at their lowest levels in at least a decade.

In a statement, Chevron vice-chair Mike Nelson said: “Chevron is taking action to simplify our organisational structure, execute faster and more effectively, and position the company for long-term competitiveness.

“We do not take these actions lightly and will support our employees through the transition. But responsible leadership requires taking these steps to improve the long-term competitiveness of our company for our people, our shareholders, and our communities.”