US oil major Chevron (NYSE: CVX) has announced that it will cut 15-20% of its workforce as it looks to make $3 billion worth of savings by 2026.
With a global workforce of around 40,000 people across all its operations, this could potentially mean 8,000 people will lose their jobs.
The company was hit by weak margins at its refining and gasoline sectors, while its operations in Kazakhstan have been hit by cost overruns and delays. In addition, it has struggled to close a $53b deal to acquire oil producer Hess and enter the growing Guyanese oil industry, adding to its woes.
Chevron vice chairman Mark Nelson said in a statement: “Chevron is taking action to simplify our organisational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness.
“We do not take these actions lightly and will support our employees through the transition.”
Industry sources have added that Chevron will reorganise its business as part of the cost-cutting measures, including announcing a new leadership structure in the next two weeks.
The company will also hold an internal town hall meeting for employees where they can begin opting for buyouts now through April or May.
Chevron has a limited presence in the UK, including a 19.4% non-operated stake in the Clair Field. However, it has already floated plans to sell this, marking an end to company’s presence in the North Sea after more than 55 years.
Chevron would also sell its interests in the Sullom Voe oil terminal, along with stakes in the Ninian and SIRGE pipeline systems.
The potential asset sale spread rumours that it may affect up to a dozen of the company’s workers in the UK.
Chevron is the latest oil and gas company looking to make job cuts. BP announced plans this year to cut 7,700 jobs as it looks to save £2b. And last year, industry sources warned Shell could cut its oil and gas exploration workforce by 20%.
Recommended for you
