Chevron to Slash Up to 20 Percent of Staff in Push for Cost-Cutting Efficiency

A Chevron gas station in Los Angeles, Calif. Mario Tama/Getty Images

Chevron will reduce its global workforce by 15–20 percent by the end of 2026 as part of a sweeping effort to cut costs and streamline operations.

“Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness,” Chevron vice chairman Mark Nelson told The Epoch Times in an emailed statement on Feb. 12.

Nelson said that Chevron also plans to optimize its portfolio, adopt new technologies to boost productivity, and restructure operations with an increased reliance on global centers. The company expects these actions to lead to workforce reductions beginning in 2025, with most completed before the end of 2026.

The cuts align with Chevron’s previously announced goal of reducing structural costs by $2–3 billion by 2026, with some residual impact extending into 2027 and beyond. At the end of 2023, Chevron employed 40,212 people, meaning a 20 percent reduction could impact approximately 8,000 workers.

″We do not take these actions lightly and will support our employees through the transition,” Nelson said. “But responsible leadership requires taking these steps to improve the long-term competitiveness of our company for our people, our shareholders and our communities.”

Chevron’s cost-cutting push comes amid challenging financial circumstances. The company missed Wall Street’s fourth-quarter earnings expectations, reporting a $248 million loss in its fuel business—down sharply from a $1.15 billion profit a year earlier—as refining margins declined.

Adding to its challenges, Chevron’s planned $53 billion acquisition of Hess Corp. remains in limbo due to an ongoing arbitration dispute with Exxon-Mobil. The acquisition is central to Chevron’s long-term strategy to expand its oil production, but Exxon says it has the right to preemptively acquire Hess’s stake in a key offshore project. The legal battle has created uncertainty over whether the deal will proceed as planned.

Chevron announced the workforce reduction amid the Trump administration’s ongoing efforts to boost domestic oil and gas production in a bid to strengthen U.S. energy dominance, boost national security, and lower consumer prices.

Since assuming office for a second term, President Donald Trump signed at least eight executive orders directly related to energy policy, including four that rolled back more than 200 regulations and executive orders issued under President Joe Biden’s administration. These reversals targeted rules adopted within the last 60 days of Biden’s administration, as well as provisions from two major climate-focused bills passed in 2021 and 2022.

Two of Trump’s orders specifically addressed energy policies in Alaska and California, while another imposed a temporary pause on offshore wind development leasing. One executive order also included directives aimed at significantly expanding offshore oil and gas leasing, aligned with his administration’s pro-drilling campaign promise.