Chevron Corp. (NYSE: CVX) plans to lay off approximately 200 employees in Texas on July 15 as part of a sweeping global restructuring plan that will eliminate up to 20% of its workforce by 2026.
The scheduled Midland-area layoffs will target three locations in the heart of Chevron’s Permian Basin operations. The cuts represent the latest phase of a cost-reduction strategy announced in February that could affect up to 9,000 employees worldwide.
Chevron is targeting $2 billion to $3 billion in structural cost savings through 2026 by streamlining operations, implementing new technologies, and redistributing work locations. The San Ramon, California-based company employed about 45,300 people globally at the end of 2024.
“Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness,” Vice Chairman Mark Nelson said in a statement in February.
The restructuring is a fundamental shift from Chevron’s historically decentralized model to a more centralized approach. The company will merge its offshore operations spanning from the American Gulf Coast to Nigeria, Angola and the Eastern Mediterranean into one division, while unifying its unconventional drilling operations across Texas, Colorado, and Argentina.
The company said that it will create technical engineering centers in Houston and Bengaluru, India, while establishing administrative hubs in Manila and Buenos Aires to handle financial, HR and technology operations that were previously scattered across multiple countries. The company opened a $1 billion innovation center in Bengaluru last year.
Affected employees in Texas will receive severance packages, transition assistance for medical coverage, and at least 60 days’ advance notice, according to company documents filed with the Texas Workforce Commission.
The upcoming layoffs initially caused confusion when state workforce officials mistakenly reported 800 layoffs instead of 200, an error that was later corrected.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
What is cost cutting to you unfortunately is not to the 200 people laid off. I imagine the employees in India are grateful for their jobs. It is always a business decision to improve your goals, I get that. Hope that the people losing their jobs won’t have a difficult time restructuring their lives. I own stock in Chevron. Not sure it is where I want to put my money. The amount of my money invested in Chevron won’t affect you as much as your restructuring means to the unemployed.