Chevron plans major layoffs affecting hundreds in Texas
- Chevron is implementing a global workforce reduction of up to 20%, resulting in approximately 200 layoffs in Texas.
- The affected employees will primarily be based in Midland at three different locations.
- This organizational restructuring aims to improve operational efficiency and competitiveness.
In 2025, Chevron Corporation, based in Houston, Texas, announced plans for significant workforce reductions as part of a global strategy to enhance operational efficiency. The company aims to cut approximately 20% of its global workforce by the end of 2026, which translates to a potential loss of 6,750 to 9,000 positions. Consequently, Chevron has communicated its intention to lay off 200 employees in Texas, with particular impacts to its locations in Midland. This step reflects the broader organizational changes that the energy giant is undertaking to simplify structures and improve competitiveness in a challenging market. The layoffs are scheduled for July 15, concentrated primarily on the Deauville Boulevard facility, where 185 staff members will be affected. Smaller layoffs involve 14 workers at the North FM 1788 location and seven at the South County Road site. This decision comes amid Chevron's strategic realignment following pressures and challenges encountered in various operational regions. Also noteworthy is Chevron's recent termination of contracts in Venezuela due to U.S. sanctions, which required the company to delegate its governance in the area but still retain essential staff there. Chevron Vice Chair Mark Nelson emphasized that these cuts are not merely about reducing numbers but also about restructuring to operate more effectively. The goal is to navigate the company toward stronger performance amidst fluctuating global oil prices and regulatory environments. Such adjustments are necessary for any company seeking resilience and sustainability in a competitive industry landscape. As the company moves forward with its plans, the layoffs reflect a sobering reality for the labor market in Texas and the broader implications of energy sector adjustments in the U.S. The corporate strategy aims to cultivate a streamlined organization that can better respond to market demands while also addressing the complex dynamics affecting the oil and gas sector globally.