'We do not take these actions lightly and will support our employees through the transition'
Oil producer Chevron is laying off up to 20% of employees in the next two years as part a move to cut costs, according to reports.
Reuters reported that Chevron will lay off 15% to 20% of its global workforce by the end of 2026.
Chevron employed 40,212 employees across its operations as of the end of 2023, which means a 20% cut would impact around 8,000 people if the company's workforce has remained the same.
According to Reuters, citing an internal source, Chevron employees have already been informed that they can start opting for buyouts now through April or May.
"Chevron is taking action to simplify our organisational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness," said Mark Nelson, vice chairman of Chevron, in a statement to the news outlet.
"We do not take these actions lightly and will support our employees through the transition."
The layoffs come as the oil producer, the second-largest US oil and natural gas company, is targeting up to $3 billion in cost cuts through 2026.
Chevron's financial results for the fourth quarter of 2024 showed earnings of $3.2 billion ($1.84 per share - diluted), compared with $2.3 billion ($1.22 per share - diluted) in the same period in 2023.
Adjusted earnings for the quarter were $3.6 billion ($2.06 per share - diluted), down from $6.5 billion ($3.45 per share - diluted) in the fourth quarter of 2023.
The oil giant's move adds it to the growing number of organisations carrying out massive layoffs over the past few years. They include Dell, Tesla, Nissan, among others.
