If last year’s tech layoffs were a proverbial bloodbath, 2025 is shaping up to be no different. Since the start of the year, job cuts have dominated headlines, and the fallout is no longer confined to the tech sector. The oil industry too, has been swept into the wave of layoffs in 2025. This Wednesday, Chevron layoffs sent fresh shockwaves across markets, fueling further uncertainty. As Chevron job cuts add to the toll of layoffs in 2025, the trend of workforce reductions shows no signs of slowing any time soon.
Chevron, now headquartered in Houston, announced it will lay off 20% of its global workforce. This marks a reduction in headcount of 9,000 people by the end of 2026 in an effort to simplify its structure and raise profits.
Today’s news of Chevron layoffs comes after the company announced in December “structural cost reductions”.
“These reductions are in line with our previous announcement of $2 to $3 billion in targeted structural cost reductions by the end of 2026, with some residual impact in 2027 and beyond,” Chevron said on a statement.
Chevron did not provide further detail about where the job cuts would fall.
Mark Nelson, vice chairman of Chevron Corp., said the U.S. oil producer believes changes to the organizational structure would “improve standardization, centralization, efficiency and results.”
Chevron layoffs to simplify structure
Last year in August, Chevron announced plans to relocate its headquarters from San Ramon to Houston, Texas. The second largest oil producer in the U.S. as faced production snags including cost overruns and a six-month delay during the final stages of the $45 billion development. It comes as no surprise that Chevron layoffs today are a result of a lot of things falling apart in recent years.
Chevron’s $53 billion deal to acquire oil producer Hess and gain a massive foothold in Guyana’s flourishing oilfield is now in limbo due to a longstanding court battle with rival Exxon Mobil, which is aggressively expanding its own oil production.
If Chevron fails to close the Hess acquisition, it would mark the second deal to slip through its fingers. In 2019, Chevron abandoned plans to acquire Anadarko Petroleum Corp. after Occidental Petroleum raised its offer.
The oil producer is also braving industry-wide weakness in the refining business and the expectation that oil prices could be swayed by a turbulent market over the next two years as global production growth has outpaced demand.
Currently, the U.S. oil producer’s only bet is saving up to $3 billion resulting in job cuts announced on Wednesday. Chevron layoffs will impact roughly 6,000 to 8,000 people.
As of 2023, Chevron had 45,511 employees working globally, with around 7,000 employees working in the Houston area, and approximately 2,000 employees in San Ramon.
Employees React to Chevron Job Cuts
Chevron layoffs come as the oil producer plans a $66.5 million renovation of its headquarters in Houston. The company plans to renovate nine floors of its office at 1500 Louisiana Street, according to a filing with the Texas Department of Licensing and Regulation.
Chevron employees have taken to various platforms to share their discontent on the layoff news.
“What happened to the Chevron I joined a decade ago?” wrote one user on thelayoff. Many pointed towards a deteriorating value proposition.
One X (formerly Twitter) user, @DecentralizedDr, pointed out that more Chevron layoffs will be seen as oil prices go up.
I view the layoffs with Chevron as bullish oil.
The system is starting to crack.
Fully integrated E&P’s/refineries will not continue operating profitably for much longer, not at $70 oil.
The oil price has to go up, or else we will see more layoffs coming amongst US refineries.
— $5 Henry Hub believer (@DecentralizedDr) February 13, 2025
@DecentralizedDr’s insights coincide with word on the market that more layoffs will be seen in the coming months.
Mark Nelson, vice chairman of Chevron Corp., said the U.S. oil producer believes changes to the organizational structure would “improve standardization, centralization, efficiency and results.”
“We do not take these actions lightly and will support our employees through the transition. But responsible leadership requires taking these steps to improve the long-term competitiveness of our company for our people, our shareholders and our communities.”
According to Nelson, Chevron layoffs in 2025 should help shrink its structural costs by $2 to $3 billion before 2027.
The oil producer’s CFO Eimear Bonner had indicated Chevron layoffs in 2025 at the release of its third-quarter financial results. She said the company would give updated on its cost saving efforts “through 2025”.
A Larger Economic Shift
Beyond Chevron, layoffs in 2025 are accelerating across sectors. The AI pivot is now hitting tech workers, with major giants already making deep cuts this year.
Meta: 3,600 layoffs
Workday: 1,750 layoffs
Salesforce: 1,000 layoffs
Google & Microsoft: Layoffs expected soon
At the same time, layoffs at federal agencies are raising concerns, especially for veterans, who make up roughly 30% of the workforce.
The conversation around labor economic is becoming harder to ignore. With the rise in AI and automation, the job market in 2025 is gradually sinking. Workforce reductions like those seen in today’s layoffs at Chevron may just be the beginning of larger economic shift.
Over 45% of companies expect layoffs in 2025. A large number of companies are downsizing in a bid to reduce costs, and layoffs in the tech industry could get severe. Get a detailed analysis of 2025 layoff predictions here.
Your story matters. If you’re a current or former Chevron employee with information to share, The HR Digest wants to hear from you. Reach out to Pri Mistry via email.