Around 575 workers in Houston are expected to be laid off Sept. 26, according to a Worker Adjustment and Retraining Notification filed with the Texas Workforce Commission on Wednesday.
The jobs would all be cut from the legacy Hess side of the houtilize, a spokesperson for Chevron stated.
“We are working quickly to integrate the Hess workforce and are focutilized on maintaining safe and reliable operations throughout the transition period,” the spokesperson stated. “These are difficult decisions which we do not create lightly.”
Impacted workers will be offered severance benefits and “outplacement support,” according to the company.
Chevron completed its $55 billion acquisition of Hess July 18 after prevailing in a contentious legal dispute with Exxon Mobil over offshore oil assets in Guyana. Hess, headquartered in New York, had a regional office in Houston, although the number of employees is unclear. Chevron employs about 7,000 people in the Houston area.
Chevron CEO Mike Wirth had warned on Friday that staff reduction was inevitable as the two companies merged, though no clarification was given on when or where these layoffs would come from.
Chevron’s acquisition of Hess has been lauded by analysts as a financial boon for the company that would enable it to stay with rival Exxon, thanks to Hess’ 30% stake of the Stabroek Block, a more than 6 million-acre oil and gas field offshore Guyana.
Chevron’s stock largely trconcludeed upward this week, seeing an almost 3% bump by late Wednesday afternoon.
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