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Chevron has been facing obstacles in recent months since its departure from San Ramon, with production challenges and a legal battle with competitor ExxonMobil over Chevron’s planned acquisition of Hess giving way to low profit margins in their latest financial report and a subsequent cost-cutting plan.
The company is now set to lay off between 15% and 20% of its workforce by the end of 2026 as part of a goal to decrease costs by billions in the coming years, according to an announcement this week.
“Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness,” Chevron Vice Chairman Mark Nelson said in a statement.
“This work includes optimizing the portfolio, leveraging technology to enhance productivity, and changing how and where work is performed, including the expanded use of global centers,” he continued. “We believe changes to the organizational structure will improve standardization, centralization, efficiency and results, unlocking new growth potential and helping Chevron drive industry-leading performance now and into the future.”
The plans to cut the workforce by the end of next year is part of an overall reduction of between $2 billion and $3 billion in spending during that time, Nelson added, with some “residual impact” projected in the aftermath.
“We do not take these actions lightly and will support our employees through the transition,” Nelson said. “But responsible leadership requires taking these steps to improve the long-term competitiveness of our company for our people, our shareholders and our communities.”
The move comes after Chevron concluded a process of downsizing its presence in San Ramon, first by selling the former Chevron Park site that hosted its headquarters back to Sunset Development in 2022 and moving into a downsized office space in Bishop Ranch that was designed to accommodate approximately 2,000 employees.
The downsizing process in San Ramon culminated in 2024 with the company’s announcement that it would be moving its headquarters out of the city and into Houston, Texas while some support roles would continue to operate from San Ramon. It’s unclear which of those roles, if any, are set to be impacted by the layoffs.
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