Chevron has announced it will lay off nearly 800 employees in Midland County, Texas, US, as part of a broader plan to reduce its global workforce by up to 20% by the end of 2026.
The job cuts, slated for 15 July, are said to be a response to the need for cost-cutting and business simplification.
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The lay-offs in Texas, where Chevron holds significant operations in the Permian Basin, the leading US oilfield, underscore the company’s strategic adjustments amid challenging industry conditions.
In February, Chevron disclosed its workforce reduction plans, which have since become more pressing due to recent operational setbacks.
The revocation of Chevron’s licence in Venezuela and the uncertain future of its $53bn acquisition of Hess due to an arbitration dispute have added to the company’s pressures.
Chevron had also previously announced the lay-off of at least 600 employees in California, effective 1 June, as reported in a March filing.
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By GlobalDataDespite these challenges, Chevron remains proactive in seeking new opportunities.
This month, the company expressed its intent to explore and develop significant oil and gas assets in Indonesia, targeting blocks with potential reserves of around 15 trillion cubic feet (tcf) of gas.
Djoko Siswanto, the chairman of Indonesia’s upstream oil and gas regulator, SKK Migas, confirmed Chevron’s interest.
However, Chevron, along with other multinational oil and gas companies, recently exited its Red Sea oil and gas concession blocks in Egypt after failing to locate any discoveries.
The Egyptian Petroleum Ministry has stated that these companies are reallocating their resources to other areas within Egypt, particularly the Mediterranean.
Chevron was awarded its first oil and gas exploration concessions in the Red Sea alongside Shell and Mubadala Investment Company in 2019.
