Chevron Will Lay Off Up To 20% Of Employees—Impacting Up To 9,100

Forbes - Feb 12th, 2025

Chevron, the second-most valuable American energy company, announced it will cut up to 20% of its workforce, which comprises more than 45,000 employees globally. This decision is part of a larger $3 billion cost-cutting initiative previously hinted at by CEO Mike Wirth. The company, which operates in 51 countries, is facing a significant reduction in net income, down from a record profit of $36.5 billion in 2022 to $17.7 billion last year, as oil prices stabilized following the initial surge post-Russia's invasion of Ukraine. The job cuts are expected to affect employees across its global operations, with a substantial portion of its workforce, 57%, being U.S. based.

Chevron's layoffs come amidst a broader trend of workforce reductions by major U.S. corporations in 2025, although the overall rate of job cut announcements has decreased recently. Other companies announcing significant layoffs include JPMorgan Chase, Meta, Estée Lauder, and Workday, highlighting a challenging economic landscape. Chevron's stock performance has also underwhelmed, with a -2% return over the last two years, compared to the S&P 500's 53% gain. These developments underscore Chevron's efforts to balance profitability and operational efficiency in a fluctuating market, impacting thousands of its employees and potentially affecting industry dynamics globally.

Chevron Layoffs Oil Prices Job Cuts Mike Wirth Energy Sector Corporate Restructuring

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RATING

6.8

Fair Story

Consider it well-founded

The article provides a comprehensive overview of Chevron's planned layoffs and contextualizes them within the company's financial performance and broader industry trends. It scores well in accuracy and clarity, effectively presenting the main points in an accessible manner. However, it would benefit from greater balance, including more diverse perspectives and deeper analysis of the implications of Chevron's actions. The source quality and transparency could be improved by directly citing primary sources and providing more context for financial data. Overall, the piece is timely and relevant, addressing a topic of public interest with the potential for moderate impact and engagement.

Accuracy

The article presents several factual claims about Chevron's layoffs, market position, and financial performance. Most claims, such as the planned reduction of up to 20% of Chevron's workforce and its market capitalization, align well with external sources. However, the article would benefit from more precise data verification, particularly regarding financial figures and the exact timeline of layoffs. The article accurately mentions Chevron's cost-cutting initiatives and global workforce distribution, but these claims should be cross-referenced with Chevron's official reports for precision.

Balance

The article primarily focuses on Chevron's layoffs and its financial context without much exploration of opposing perspectives or potential impacts on employees and local economies. While it includes some context about other companies' layoffs, it lacks a deeper analysis of the broader economic implications. The piece could be more balanced by incorporating viewpoints from affected employees or industry analysts to provide a fuller picture of the situation.

Clarity

The article is generally clear, with a straightforward structure that outlines the key facts and background information. The language is accessible, and the flow of information is logical, making it easy for readers to follow the main points. However, more detailed explanations of technical terms or industry-specific jargon could enhance comprehension for readers unfamiliar with the energy sector.

Source quality

The article references Chevron's statement and includes data from reputable sources such as Bloomberg and Forbes. However, it lacks direct citations from Chevron's official announcements or financial reports, which would enhance credibility. The reliance on secondary sources without direct attribution to primary data may affect the perceived reliability of the information.

Transparency

The article provides some context for Chevron's decision, citing cost-cutting measures and market performance. However, it does not fully disclose the methodology behind the financial figures mentioned or the sources of specific data points. Greater transparency about the sources of its information and any potential conflicts of interest would improve the article's trustworthiness.