Energy giant Chevron will let go of up to a fifth of its more than 45,000 employees, the company confirmed in a statement Wednesday to Forbes, becoming the latest American giant to announce a significant reduction to its headcount.
A Chevron gas station in Los Angeles.
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Key Takeaways
- Chevron will reduce its workforce by 15% to 20%, according to a statement from the company’s vice chairman Mark Nelson provided by a company spokesperson (Reuters first reported on the layoffs).
- The company had 45,511 employees as of October 2023, according to Chevron’s most recent proxy statement, meaning the layoffs will impact roughly 6,830 to 9,100 jobs.
- “Changes to the organizational structure will improve standardization, centralization, efficiency and results,” explained Nelson.
- The layoffs will begin this year and be mostly complete by the end of 2026, according to Nelson.
- Chevron did not comment on the primary areas of the company affected by the layoffs.
- “Responsible leadership requires taking these steps to improve the long-term competitiveness of our company for our people, our shareholders and our communities,” Nelson concluded his statement.
Key Background
Chevron is the second-most valuable American energy company, trailing only Exxon Mobil, and its more than $270 billion market capitalization makes it the U.S.’ 28th-largest public company. In November, Chevron CEO Mike Wirth hinted to Bloomberg that the company’s $3 billion of cost-cutting initiatives would be a “small part of the total” savings.
Chevron has employees across 51 countries, but 57% of Chevron’s workforce are on U.S. payrolls as of October 2023. Chevron scored a record profit of $36.5 billion in 2022 as energy companies globally enjoyed as oil prices shot up after Russia invaded Ukraine, but its net income pulled back to $21.4 billion in 2023 and $17.7 billion last year as oil prices moderated. After returning 58% in 2022 amid a global stock market downturn, Chevron stock has been stuck in a rut, returning -2% over the last two years, underperforming the S&P 500’s 53% return.
Other Major 2025 Layoffs
Job cut announcements declined 40% last month compared to January 2024, according to Challenger, Gray & Christmas, but Chevron joins a growing list of major corporations conducting layoffs this year. The U.S.’ biggest bank, JPMorgan Chase, will lay off less than 1,000 workers this month, according to Barron’s. Facebook parent Meta began its 5% reduction Monday, affecting about 3,600 employees. Cosmetics giants Estée Lauder announced last week it will lay off about 10% of its workers, impacting up to 7,000 positions. Talent management platform Workday said last week it will cut 8.5% of its employees, affecting roughly 1,750 jobs.
