Chevron Plans 20% Workforce Reduction to Stay Competitive

Company Overview - Chevron Corporation plans to cut up to 20% of its global workforce by 2026, aiming for $3 billion in cost savings and a simplified organizational structure [1] - As of the end of 2023, Chevron employed over 40,212 people, meaning approximately 8,000 employees may be laid off [2] Industry Context - The company is facing industry challenges, including weaker refining margins and declining oil prices, which have prompted these cost-cutting measures [3] - Chevron's major acquisition of Hess is currently on hold due to legal disputes with Exxon Mobil Corporation, raising concerns about its growth prospects [3] - The oil and gas industry in the U.S. is experiencing job losses of about 10% below pre-pandemic levels, attributed to mergers, efficiency improvements, and a focus on profitability [5] Broader Industry Trends - Since 2019, Exxon Mobil has reduced its global workforce by about 17% despite increased production, indicating a trend of job cuts across the industry [6] - Chevron's decision to cut jobs aligns with these broader industry trends aimed at strengthening competitiveness [6] Investment Opportunities - Investors may consider top-ranked stocks in the energy sector, such as SM Energy Company, which has a projected 15.11% year-over-year earnings growth for 2024 [7] - Sunoco LP is another potential investment, with an estimated 83.17% year-over-year earnings growth for 2024 [8]