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Chevron Advances Global Workforce Reduction Plan With Texas Layoffs

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Key Takeaways

  • Chevron plans to cut up to 9,000 jobs globally by 2026, with 200 layoffs set for Texas in July 2025.
  • The cuts aim to streamline operations, speed up execution and improve long-term competitiveness.
  • CVX also faces challenges, including exit from Venezuela and asset disputes tied to its Hess acquisition.

Chevron Corporation (CVX - Free Report) , the U.S. oil and gas giant, has announced that it will let go of nearly 200 workers in Texas as part of the broader plan to reduce the global workforce by up to 20% by the end of 2026. The company reported that the Texas layoffs would include 185 people at the Deauville Boulevard site, 14 people at North FM 1788 and seven more at the South County Road site.

Chevron previously announced that these job cuts would take place across its global workforce and could affect almost 6,750-9,000 employees. The recent round of layoffs in Texas is slated to take place on July 15, 2025. CVX’s latest annual report mentions that it currently employs around 40,200 non-service station employees and 5,400 employees who work at service stations.

Chevron’s Long-Term Strategy

The U.S. energy major plans to trim its workforce by 15-20% to streamline operations, execute broader plans faster and make decision-making more efficient. Furthermore, this should not only help the company reduce costs but also enhance its competitiveness in the long run.

Challenges in Venezuela

Chevron recently faced business headwinds for several reasons. The company had to terminate its operations in Venezuela, including production and procurement contracts, after President Donald Trump revoked an important license crucial to operations in the region. Following this, Chevron has handed over the governance of the joint venture to its partner, the state-owned company, PDVSA.

Dispute With ExxonMobil and CNOOC

CVX’s $53 billion acquisition of Hess Corp. and its highly productive assets in Guyana also faces uncertainty over arbitration disputes filed by ExxonMobil and China’s CNOOC. The oil-rich Starbroek block of Guyana is deemed to be the most attractive asset in this purchase. However, ExxonMobil and CNOOC have asserted that they have the right of first refusal to Hess’ Guyana assets.

CVX’s Zacks Rank & Key Picks

CVX currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the energy sector are Flotek Industries Inc. (FTK - Free Report) , Energy Transfer (ET - Free Report) and RPC, Inc. (RES - Free Report) . While Flotek Industries sports a Zacks Rank #1 (Strong Buy) at present, Energy Transfer and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industriesspecializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. FTK develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.

Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 130,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, ET’s outlook seems positive.

RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividend payments and share buybacks, making it an attractive choice for investors seeking steady returns.

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