The layoffs are set to commence this year, with the majority of reductions expected to be finalized by the end of 2026. Chevron aims to achieve cost savings ranging from $2 billion to $3 billion by the conclusion of next year.
"We do not take these actions lightly and will support our employees through the transition," stated Chevron Vice Chairman Mark Nelson. "But responsible leadership requires taking these steps to improve the long-term competitiveness of our company for our people, our shareholders and our communities."
On Wednesday, Chevron's shares were trading approximately 1% lower, although the stock has increased by about 8% this year.
The company fell short of Wall Street's earnings expectations for the fourth quarter, reporting a loss of $248 million in its fuel business, a significant decline from a profit of $1.15 billion in the previous year, attributed to decreased refining margins.
Additionally, Chevron's $53 billion acquisition of Hess Corp. is currently embroiled in arbitration with competitor Exxon Mobil, leading to uncertainty regarding the deal's completion.