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Chevron Corporation announced plans to lay off 15-20% of its global workforce by the end of 2026, equating to approximately 8,000 employees, as part of a strategy to cut costs by up to $3 billion. The second-largest oil producer in the U.S. is facing significant production challenges, including cost overruns and delays at a key oilfield project in Kazakhstan, according to Reuters.
The layoffs come as Chevron navigates hurdles in acquiring Hess Corporation amidst a legal dispute with ExxonMobil, its larger rival. Industry trends indicate a weakening refining business and anticipated pressure on oil prices as global production growth outstrips demand. Chevron’s oil and gas reserves have reportedly declined to their lowest levels in a decade, raising concerns about its long-term viability.
Mark Nelson, Chevron's vice-chairperson, stated, "We do not take these actions lightly and will support our employees through the transition." The company aims to simplify its structure and enhance competitiveness in a consolidating industry, having relocated its headquarters to Houston and established a significant tech hub in India last year.