By Ernest Scheder and Sheila Dang
Houston (Reuters) -chevron will dismiss 15% to 20% of its world -wide workforce by the end of 2026, the US oil company said on Wednesday as it tries to cut costs, streamline its business, and complete a major procurement.
The US number 2 oil producer has faced the challenges of production including over -cost costs and delays in Kazakhstan Oilfield's major project.
Meanwhile, its $ 53-billion deal to acquire the Hess oil producer and gain a foothold in Guyana's profitable oil in limbo due to court battle with larger Exxon Mobil competitor, who has outperformed production growth, achieving Record production in Guyana and the largest oil field in the United States.
Chevron has said it is targeting up to $ 3 billion in cost cuts through 2026 of stimulating technology, selling assets and changing how and where work is performed.
At the end of 2023, Chevron employed 40,212 people across his operations. A layer of 20% of the total workers would be about 8,000 people. Those figures exclude around 5,400 other Chevron Service Station workers.
Weak edges in the production of gasoline and diesel also hurt Chevron's fourth quarter earnings, as his refined business posted a loss for the first time since 2020, raising weight on CEO Mike Wreet.
Shares of Chevron rejected 1.3% in afternoon trading. The S&P 500 energy sector index fell wider 2.4%. Chevron shares are up 5.6% to date.
“Chevron acts to simplify our organizational structure, operate faster and more effectively, and set the company for stronger long-term competitiveness,” said Mark Nelson, Chevron Vice-Chairman, in a statement. “We do not take the actions This is light and will support our employees through the transition. “
The company told employees during the Internal Town Hall that they can begin to choose to buy out now through April or May, according to a source familiar with the issue.
Chevron will proclaim his business and announce a new leadership structure over the next two weeks, the source said.
The oil industry has been consolidating in recent years, focusing on mergers and operational efficiency more than drilling new wells.
Exxon, a US number 1 oil company, bought Pioneer Natural Resources last year to become the largest producer in Permist Basin. Exxon also has the largest stake in the Guyana oil joint venture which has discovered more than 11 billion barrels of oil.
If Chevron fails to close the Hess acquisition, this would be the second deal to slip through fingers. In 2019, Chevron left his bid to buy Anadarko Petroleum Corp after Occidental Petroleum raised his offer.