By Ernest Scheyder
HOUSTON (Reuters) -Chevron will lay off 15% to 20% of its global workforce, the U.S. oil company said on Wednesday during an internal employee town hall meeting, according to a source familiar with the matter.
The planned layoffs come as the company has said it is targeting $3 billion in cost cuts through 2026 from leveraging technology, asset sales and changing how and where work is performed.
Chevron is embroiled in a court battle with rival Exxon Mobil over its planned acquisition of oil producer Hess, which is the cornerstone of its plans for increasing oil production. At the same time, the company is facing weak margins in its refining business, which reported a loss in the fourth quarter for the first time since 2020.
Shares of Chevron declined 0.7% in afternoon trading.
Chevron did not immediately respond to request for comment.
At the end of 2023, Chevron employed 40,212 people across its operations.
The company told employees they can begin opting for buyouts now through April or May, the source said.
Staffers will be selected and notified if they are part of the layoffs by May or June, according to a slide presentation seen by Reuters.
(Reporting by Ernest Scheyder in Houston; Editing by Chizu Nomiyama and Franklin Paul)
