Chevron Is Cutting Thousands of Jobs

America's No. 2 oil producer is planning to cut its global workforce by up to a fifth as part of a cost-cutting drive. Chevron announced Wednesday that it aims to slash its headcount by 15% to 20% by the end of next year, CNBC reports. A source tells Reuters that employees have been told that they can start opting for buyouts between now and April or May. At the end of 2023, Chevron employed 40,212 people worldwide, not counting around 5,400 service station employees, so a 20% cut would affect around 8,000 workers, Reuters reports.

"We do not take these actions lightly and will support our employees through the transition," Mark Nelson, vice chairman of Chevron, said in a statement. He said Chevron is taking steps to "position the company for stronger long-term competitiveness." Nelson said the company plans to use technology to boost productivity and change how and where work is performed, the Financial Times reports. Reuters notes that the company is facing challenges including an expected drop in oil prices over the next two years and Exxon Mobil's attempt to block its proposed $53 billion acquisition of Hess. (More Chevron stories.)