• Chemical giant Chevron plans to cut 15% to 20% of its global workforce by the end of 2026, affecting up to 9,100 jobs.
• The layoffs are driven by efforts to achieve $3 billion in cost reductions and improve operational efficiency.
• Chevron is in a court battle with Exxon Mobil regarding its acquisition of Hess oil producer, complicating its expansion efforts.

Chevron (CVX.N), one of the largest energy companies in the United States, confirmed on Wednesday that it will implement significant layoffs, reducing its workforce by 15% to 20%. The company, which employed approximately 45,511 individuals as of October 2023, will see job losses ranging from about 6,830 to 9,100 as part of a broader effort to cut costs and streamline operations. This initiative comes amidst a backdrop of weak refining margins, with Chevron reporting its first operational loss in that segment since 2020, as highlighted in a statement from vice chairman Mark Nelson.

The move to downsize aligns with Chevron's target for $3 billion in cost cuts through 2026, leveraging improvements in technology, asset sales, and workplace restructuring. In recent trading, shares of Chevron dipped by 0.7% as news of the layoffs came to light. Employees have been informed that they can opt for voluntary buyouts from now until April or May. The restructuring will be revealed in a new leadership organizational chart set to come out within the next two weeks. Nelson clarified, “Responsible leadership requires taking these steps to improve the long-term competitiveness of our company for our people, our shareholders, and our communities.”

The company’s challenges have also included a legal dispute with Exxon Mobil over its planned acquisition of Hess, a major player in the oil sector, which was critical for its production increase strategy. This announcement positions Chevron amidst a trend of other large corporations announcing significant layoffs recently as they navigate economic pressures.

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