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The headlines these days are awash with cost
cutting news,
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and it appears that one big name in oil and gas
is jumping headfirst into slashing its overhead.
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Chevron revealed Wednesday that it plans to cut
a significant number of jobs in order to shore
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up as much as $3 billion in cost savings.
The cuts are projected to include between 15
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and 20% of Chevron’s global workforce.
They will reportedly start now and will
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conclude before the end of next.
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The cuts come on weak earnings from Chevron,
who reported a loss in its refining segment for
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the first time since 2020.
The company said its fuel business lost $248
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million in the fourth quarter, a catastrophic
swing compared with a profit of $1.15 billion
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in the prior year.
A backdrop for all of this is another problem
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for Chevron.
In 2023, the company announced a $53 billion
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bid to buy Hesse, a deal that’s becoming
increasingly complicated as Chevron rival
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ExxonMobil has mounted a legal challenge that’s
led to the yet to be resolved effort dragging
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on for two years.
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Meanwhile, the firm’s vice chairman, Mark
Nelson says it needs to simplify its business
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and its organizational structure in order to
execute faster and more effectively and
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position the company for a stronger long-term
competitiveness.
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Specific to the job cuts, Nelson later said in
a statement that the company does not take
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these actions.
And that it will support employees through the
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transition.
CNN, citing a source familiar with the matter,
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said the company is telling employees they can
opt for buyouts between now and April or May.
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Chevron’s workforce across the globe is an
estimated 40,000 deep,
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meaning a cut of 1/5 would amount to 8000 jobs.
Forbes says at least as of late 2023,
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that 57% of the company’s workers are US based.
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Immanu Wells.
This is manufacturing now.