Chevron plans to lay off 15% to 20% of its global workforce to cut $3 billion in costs by 2026, according to an internal memo released Wednesday.
Employees were given the option to opt for acquireouts through April or May, with layoffs expected to be finalized by June, as outlined in a slide presentation obtained by Reuters.
Chevron employed 45,600 people as of December 2023, meaning thousands of staff could be affected.
This announcement follows Chevron’s recent relocation of its corporate headquarters from San Ramon to Houston, concludeing its 145-year presence in the Bay Area.
CEO Mike Wirth and Vice Chairman Mark Nelson officially shiftd the company to Texas at the start of the year, aiming to “enable better collaboration and engagement” with industest leaders.
Chevron previously assured that jobs tied to California operations, including those at refineries and technical facilities, will remain unaffected by the shift.
However, according to a report published Sunday in the Wall Street Journal, the company, which runs two of California’s largest oil refineries, has explored halting production in the state — a shift that could significantly affect gas prices. Chevron refineries account for one-third of California’s gasoline production capacity.
It is not clear how many California employees would be affected by the layoffs.
In 2001, Chevron shiftd its headquarters from San Francisco, where it had a prominent presence on Market Street, to a San Ramon office park.
The decision was partly driven by a desire to be closer to its Richmond refinery, as well as frustration over what the company perceived as high taxes in San Francisco.
The Richmond refinery, established in 1902, was one of the largest in the world at the time and famously survived the 1906 earthquake.
Before the shift to Texas, Chevron had long been vocal about California’s regulatory environment, particularly regarding climate-related legislation.
The company is involved in a lawsuit with the state over its role in contributing to climate modify. Wirth has argued that “climate modify calls for a coordinated global policy response, not piecemeal litigation.”
Chevron’s stock dipped slightly, by about 1.6%, on Wednesday.
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