Chevron announced Wednesday it will lay off 800 employees in Midland County, Texas by July 15. Six hundred more are set to be laid off in California by June 1.
The cuts are part of the oil company’s effort to downsize its global workforce by 20% by 2026. Chevron has a major operation in Texas’s Permian Basin.
During the first quarter of this year, Chevron reported earnings of $3.5 billion, which was $2 billion less than 2024’s first quarter. According to the company, this was due to “a net loss of $175 million related to legal reserves and a tax charge due to changes in the energy profits levy in the United Kingdom that were partially offset by the fair value measurement of Hess Corporation shares.”
Chevron is in the process of acquiring Hess in a $53 billion deal.
“Despite changing market conditions, our resilient portfolio, strong balance sheet, and consistent
focus on capital and cost discipline position us to deliver industry-leading free cash flow growth
by 2026,” Chevron CEO Mike Wirth said when the first quarter results were released.
VOLVO TO CUT 3,000 JOBS AS COMPANY FEELS EFFECT OF TARIFFS
This comes less than a year after Chevron moved its headquarters from San Ramon, California to Houston, Texas. Wirth explained the move happened after a 140-year history in the area because “California has a number of policies that raise costs, that hurt consumers, that discourage investment.”
There are about 7,000 Chevron employees in the Houston area, compared to 2,000 remaining in California.