Chevron plans to lay off thousands of employees worldwide, company says

SAN FRANCISCO -- Oil giant Chevron says it is cutting its global workforce by 15% to 20% by next year.

Chevron says the layoffs are necessary to reduce costs and raise profits.

About 9,000 employees around the world could be impacted, but it's unclear how many would be in the Bay Area.

This comes after the company announced in December "structural cost reductions."

"These reductions are in line with our previous announcement of $2 to $3 billion in targeted structural cost reductions by the end of 2026, with some residual impact in 2027 and beyond," Chevron said in a statement to ABC7 News on Wednesday.

The company said it's trying to simplify its "organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness."

Chevron announced in August 2024, it would relocate its headquarters from San Ramon to Houston, Texas.

As of 2023, Chevron had 45, 511 employees worldwide with about 7,000 employees working in the Houston area and approximately 2,000 employees in San Ramon, the company said before the move.

The company said, "We do not take these actions lightly and will support our employees through the transition."