Chevron Corp., an American oil and gas firm, plans to lay off nearly 800 employees in the Permian Basin by July 15, 2025, according to a filing with the Texas Workforce Commission.
This region is the company’s largest oil-production operation globally. Most reductions will come from Chevron’s Midcontinent campus near Midland, Texas.
“Chevron is taking action to simplify our operating model, execute work faster and more effectively,” the company stated.
“This is a difficult decision, and we do not make it lightly.”
Chevron is undergoing a significant restructuring, aiming to reduce its global workforce by up to 20% (9,000 people) by the end of 2026.
CEO Mike Wirth aims to reduce structural costs by $3 billion, enhancing efficiency and resilience to low oil prices.
Despite the job cuts, Chevron’s Permian production is projected to reach 1 million barrels of oil equivalent per day (boed) soon, accounting for nearly a third of the company’s global output. Wirth expects the operation to plateau in the latter half of the 2020s as the company focuses on reduced spending and higher free cash flow.
“We understand the impact this news may have on our employees, their families, and the communities where we operate,” Chevron said, adding that it will offer severance benefits and job seekers’ support to affected employees.
Source:https://energynewsafrica.com
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