Chevron Will Lay Off Up To 20% Of Employees—Impacting Up To 9,100

Core Viewpoint - Chevron will reduce its workforce by 15% to 20%, impacting approximately 6,830 to 9,100 jobs, as part of a restructuring initiative aimed at improving efficiency and competitiveness [1][2][4]. Group 1: Workforce Reduction - Chevron confirmed it will let go of up to a fifth of its more than 45,000 employees, with layoffs beginning this year and expected to be mostly complete by the end of 2026 [1][2]. - The company had 45,511 employees as of October 2023, indicating a significant impact on its workforce [2]. - Vice Chairman Mark Nelson stated that changes to the organizational structure will enhance standardization, centralization, and results [2][3]. Group 2: Financial Context - Chevron is the second-most valuable American energy company, with a market capitalization exceeding $270 billion, making it the 28th-largest public company in the U.S. [4]. - The company reported a record profit of$36.5 billion in 2022, but net income decreased to $21.4 billion in 2023 and$17.7 billion in the previous year as oil prices moderated [4]. - Chevron's stock has underperformed, returning -2% over the last two years, compared to the S&P 500's 53% return [4]. Group 3: Industry Trends - Job cut announcements in the U.S. declined by 40% last month compared to January 2024, but Chevron is part of a growing list of major corporations conducting layoffs this year [5]. - Other companies, such as JPMorgan Chase, Meta, Estée Lauder, and Workday, have also announced significant layoffs, indicating a broader trend in the corporate sector [5].