Economy News – Follow-up
Chevron, the American oil and energy corporation, announced on Wednesday its intention to reduce its workforce by 15% to 20% as part of a comprehensive cost-cutting strategy. This move aims to enhance operational efficiency and overall competitiveness.
The company indicated that layoffs will commence this year, with a majority of reductions expected to be finalized by the end of 2026. These workforce adjustments are integral to Chevron’s broader objectives, targeting cost reductions between $2 billion and $3 billion by the close of next year.
Chevron’s Vice President stated, “We are not making these decisions lightly and will support our employees during the transition. However, responsible leadership necessitates these actions to bolster our long-term competitiveness for our employees, shareholders, and communities.”
During trading on Wednesday, Chevron’s stock experienced a 1% decline, despite rising approximately 8% year-to-date.
In the fourth quarter of 2024, Chevron reported earnings that fell short of market expectations. The company’s fuel sector suffered a loss of $248 million, a stark contrast to the $1.15 billion profit recorded in the same quarter of the previous year, attributed to declining refining margins.
Additionally, Chevron’s impending acquisition of Hess Corporation is shrouded in uncertainty, with a $53 billion arbitration case involving competitor Exxon raising questions about the transaction’s completion.
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