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Chevron to cut up to 20% of workforce by 2026 amid cost-cutting push, Exxon legal battle

Chevron plans to lay off between 15% and 20% of its global workforce by the end of 2026 as part of a broader effort to reduce costs and streamline operations, the US oil giant announced on Wednesday.

The job cuts come at a challenging time for the company, which is locked in a legal dispute with Exxon Mobil over its $53 billion acquisition of Hess Corp.

Meanwhile, Chevron is grappling with declining refining margins, which led to its first quarterly loss in that segment since 2020.

The company aims to achieve $3 billion in cost reductions over the next two years through increased automation, asset sales, and restructuring operations.

At the end of 2023, Chevron had 40,212 employees, meaning the layoffs could impact as many as 8,000 workers.

Employees will have the option to take voluntary buyouts through April or May, according to a source familiar with the matter.

The company is also expected to unveil a new leadership structure within the next two weeks as part of its reorganization efforts.

“Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness,” said Mark Nelson, Chevron’s vice chairman, in a statement.

“We do not take these actions lightly and will support our employees through the transition.”

Shares of Chevron fell 0.7% in afternoon trading following the announcement.

The post Chevron to cut up to 20% of workforce by 2026 amid cost-cutting push, Exxon legal battle appeared first on Invezz

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