Houston, TX – May 29, 2025 – Chevron Corporation, one of the largest oil producers in the United States, has announced plans to lay off nearly 800 employees in Texas as part of a broader strategy to reduce its global workforce by up to 20% by the end of 2026. The layoffs, detailed in a notice filed with the Texas Workforce Commission, will primarily affect workers in Midland County, where Chevron maintains significant operations in the Permian Basin, the nation’s top oilfield. This move comes as the company faces mounting challenges, including operational setbacks, a revoked license in Venezuela, and uncertainties surrounding its proposed $53 billion acquisition of Hess Corporation.
Details of the Texas Layoffs
According to the filing with the Texas Workforce Commission, the layoffs in Texas are set to take effect on July 15, 2025, and will impact Chevron’s Midcontinent campus on the outskirts of Midland. The Permian Basin, a critical hub for U.S. oil production, has been a cornerstone of Chevron’s operations, making these cuts particularly significant for the region’s economy. The 800 job losses in Texas follow an earlier announcement in March, where Chevron disclosed plans to cut at least 600 jobs in California, effective June 1, 2025. Together, these reductions reflect Chevron’s aggressive push to streamline its operations and cut costs in response to a challenging market environment.
The company’s decision to reduce its workforce is part of a larger plan announced in February 2025, aiming to cut 15% to 20% of its global workforce, which stood at approximately 46,500 employees at the end of 2023. This translates to potential job losses of up to 9,000 employees worldwide. Chevron’s Vice Chairman, Mark Nelson, emphasized that the cuts are intended to “simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness.” He added, “We do not take these actions lightly and will support our employees through the transition.”
Why Is Chevron Cutting Jobs?
Chevron’s workforce reduction plan is driven by a combination of internal and external pressures. The company is targeting $2 billion to $3 billion in structural cost reductions by 2026, focusing on leveraging technology, selling non-core assets, and reorganizing how and where work is performed. These efforts are part of a broader strategy to boost efficiency and profitability in a volatile energy market.
The oil industry has faced significant challenges in recent years, including fluctuating oil prices, increased competition, and a global shift toward renewable energy. Chevron has encountered specific hurdles, such as cost overruns and delays in its large Kazakhstan oilfield project, as well as the revocation of its operating license in Venezuela. Additionally, its $53 billion bid to acquire Hess Corporation, which would provide access to Guyana’s lucrative oilfields, remains in limbo due to an arbitration dispute with ExxonMobil. These setbacks have intensified the need for cost-cutting measures to maintain financial stability.
The broader oil industry is also undergoing consolidation, with a focus on mergers and operational efficiency rather than new drilling projects. For example, ExxonMobil, Chevron’s larger rival, acquired Pioneer Natural Resources in 2024 to become the largest producer in the Permian Basin and has reduced its global workforce by 17% since 2019 while boosting production. Chevron’s layoffs align with similar moves by competitors like BP, which announced plans in January 2025 to cut 4,700 jobs and 3,000 contractor roles to achieve $2 billion in cost savings by 2026.
Impact on Texas and the Permian Basin
The layoffs in Midland County are likely to have a significant impact on the local economy, where Chevron is a major employer. The Permian Basin, spanning West Texas and southeastern New Mexico, is the heart of U.S. oil production, and job cuts in this region could ripple through local businesses and communities. While Chevron has not specified how many Houston-based employees will be affected, the company employs over 7,000 workers in the Houston metropolitan area, where it relocated its headquarters from San Ramon, California, in August 2024.
The move to Houston was part of Chevron’s effort to position itself closer to the epicenter of the U.S. oil industry, but the announcement of layoffs has sparked concern among workers and local leaders. “These cuts are a blow to the Permian Basin, where Chevron’s operations have been a vital part of the economy,” said a local business owner in Midland, who asked to remain anonymous. “We’re hoping the company will provide support for those losing their jobs and that the region can rebound quickly.”
Chevron has stated that it will offer support to affected employees, including severance packages and assistance with job transitions. The company also plans to reorganize its business structure and announce a new leadership framework in the coming weeks, according to a source familiar with an internal town hall meeting held earlier this year.
Broader Implications for the U.S. Oil Industry
Chevron’s layoffs reflect broader trends in the U.S. oil and gas sector, which remains about 10% below pre-pandemic employment levels despite rising domestic production. Advances in drilling efficiency and a focus on profitability over production growth have reduced the need for large workforces. Additionally, the rise of automation and artificial intelligence is transforming the industry, allowing companies to do more with fewer employees.
The job cuts also come at a time when Chevron is investing in new ventures to diversify its operations. In 2024, the company announced a $1 billion innovation hub in Bengaluru, India, aimed at enhancing its engineering and digital capabilities. While this move is expected to create jobs in India, it has raised concerns among U.S. workers about potential offshoring. Social media platforms like X have seen discussions about Chevron’s strategy, with some users speculating that the company’s focus on global centers could lead to further job losses in the U.S.
Chevron’s Financial Performance and Future Outlook
Chevron’s financial performance has been mixed in recent years. The company reported record profits of $36.5 billion in 2022, driven by high oil prices following Russia’s invasion of Ukraine. However, its net income fell to $21.4 billion in 2023 and $17.7 billion in 2024 as oil prices moderated. In the fourth quarter of 2024, Chevron reported earnings of $3.2 billion, below expectations due to weak refining margins. CEO Mike Wirth noted that the post-pandemic surge in fuel margins has ended, with a continued downward trend expected in 2025.
Despite these challenges, Chevron remains a major player in the global energy market, with significant operations in the Permian Basin and the Tengiz development in Kazakhstan. The potential acquisition of Hess could further bolster its growth, particularly in Guyana, where ExxonMobil has discovered over 11 billion barrels of oil. However, the ongoing arbitration dispute with ExxonMobil adds uncertainty to Chevron’s long-term prospects.
What’s Next for Chevron and Its Employees?
As Chevron moves forward with its cost-cutting and restructuring plans, the focus will be on balancing efficiency with employee support. The company has emphasized its commitment to helping laid-off workers through the transition, but the scale of the cuts—potentially affecting up to 9,000 employees globally—has sparked concern among employees and industry observers.
For workers in Texas, the layoffs add to the uncertainty in an industry already grappling with economic and technological shifts. Local communities in the Permian Basin are bracing for the impact, while Chevron continues to navigate a complex landscape of market pressures and strategic investments.
For more information on Chevron’s layoffs and their impact on the oil industry, visit Reuters and Bloomberg. For updates on the U.S. oil and gas sector, check out Houston Public Media.
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