Dive Brief:
- Chevron expects to cut around 20% of its global workforce, equivalent to about 9,000 employees, by the end of 2026, a company spokesperson confirmed to C-Store Dive on Monday.
- One upcoming round of cuts will begin this summer, when 1,300 team members will be let go from Chevron’s Houston headquarters and its former base in San Ramon, California, the spokesperson said.
- The layoffs are part of Chevron’s plans to cut between $2 billion and $3 billion in costs by changing “how and where work is performed” by the end of 2026, the spokesperson said.
Dive Insight:
Chevron’s cost-reduction goals aim to simplify its organizational structure and enable teams to work faster and more effectively, the spokesperson said. The spokesperson added that Chevron will lean heavily on technology to enhance productivity and expand its use of “global centers.”
“We believe changes to the organizational structure will improve standardization, centralization, efficiency and results, unlocking new growth potential and helping Chevron drive industry-leading performance now and into the future,” the spokesperson said.
Laying off what could be around 9,000 employees is part of this productivity push. It also mirrors a recent initiative by fuel competitor BP, which revealed plans in January to cut 4,700 jobs and 3,000 contractor roles amid efforts to lower costs by $2 billion by 2026.
One upcoming round of Chevron’s staff cuts will impact about 700 workers in Houston on May 28, and 600 in San Ramon starting June 1, the spokesperson said.
“We do not take these actions lightly and will support our employees through the transition,” the spokesperson 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 spokesperson said further details on how these cost-cutting measures will impact the company’s retail division were not available. Chevron co-owns over 1,100 ExtraMile convenience stores with Jacksons Food Stores and supplies fuel at about 8,000 gas stations across the U.S.
