The headlines these days are awash with cost-cutting news, and it appears that one big name in oil & gas is jumping head-first into slashing its overhead.
Chevron revealed Wednesday that it plans to cut a significant number of jobs in order to shore up as much as $3 billion in cost savings.
The cuts are projected to include between 15% and 20% of Chevron’s global workforce. They will reportedly start now and will conclude before the end of next year.
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The cuts come on weak earnings from Chevron, who reported a loss in its refining segment for the first time since 2020. The company said its fuel business lost $248 million in the 4th quarter, a catastrophic swing compared with a profit of $1.15 billion in the prior year.
A backdrop for all of this is another problem for Chevron. In 2023, the company announced a $53 billion bid to buy Hess, a deal that’s become increasingly complicated as Chevron rival Exxon Mobil has mounted a legal challenge that’s led to the yet-to-be-resolved effort dragging on for two years.
Meanwhile, the firm’s vice chairman Mark Nelson says it needs to simplify its business and its organizational structure in order to “execute faster and more effectively, and position the company for stronger long-term competitiveness.”
Specific to the job cuts, Nelson later said in a statement that the company “does not take these actions lightly” and that it will support employees through the transition.
CNN, citing a source familiar with the matter, said the company is telling employees they can opt for buyouts between now and April or May.
Chevron’s workforce across the globe is an estimated 40,000-deep, meaning a cut of one-fifth would amount to 8,000 jobs. Forbes says, at least as of late 2023, that 57% of the company’s workers are US-based.
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X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
00:00.009 --> 00:03.200
The headlines these days are awash with cost
cutting news,
00:03.230 --> 00:08.130
and it appears that one big name in oil and gas
is jumping headfirst into slashing its overhead.
00:08.399 --> 00:13.680
Chevron revealed Wednesday that it plans to cut
a significant number of jobs in order to shore
00:13.680 --> 00:18.920
up as much as $3 billion in cost savings.
The cuts are projected to include between 15
00:18.920 --> 00:24.399
and 20% of Chevron's global workforce.
They will reportedly start now and will
00:24.399 --> 00:25.719
conclude before the end of next.
00:26.235 --> 00:30.575
The cuts come on weak earnings from Chevron,
who reported a loss in its refining segment for
00:30.575 --> 00:34.974
the first time since 2020.
The company said its fuel business lost $248
00:34.974 --> 00:40.224
million in the fourth quarter, a catastrophic
swing compared with a profit of $1.15 billion
00:40.534 --> 00:43.825
in the prior year.
A backdrop for all of this is another problem
00:43.825 --> 00:47.955
for Chevron.
In 2023, the company announced a $53 billion
00:47.955 --> 00:52.560
bid to buy Hesse, a deal that's becoming
increasingly complicated as Chevron rival
00:52.560 --> 00:57.909
ExxonMobil has mounted a legal challenge that's
led to the yet to be resolved effort dragging
00:57.909 --> 00:59.340
on for two years.
00:59.549 --> 01:04.080
Meanwhile, the firm's vice chairman, Mark
Nelson says it needs to simplify its business
01:04.080 --> 01:09.190
and its organizational structure in order to
execute faster and more effectively and
01:09.190 --> 01:12.300
position the company for a stronger long-term
competitiveness.
01:12.550 --> 01:16.750
Specific to the job cuts, Nelson later said in
a statement that the company does not take
01:16.750 --> 01:19.964
these actions.
And that it will support employees through the
01:19.964 --> 01:22.875
transition.
CNN, citing a source familiar with the matter,
01:23.245 --> 01:27.675
said the company is telling employees they can
opt for buyouts between now and April or May.
01:27.885 --> 01:31.845
Chevron's workforce across the globe is an
estimated 40,000 deep,
01:32.324 --> 01:38.885
meaning a cut of 1/5 would amount to 8000 jobs.
Forbes says at least as of late 2023,
01:38.964 --> 01:43.434
that 57% of the company's workers are US based.
01:43.964 --> 01:46.044
Immanu Wells.
This is manufacturing now.
