Chevron To Eliminate 200 Jobs In The Permian Basin, Bloomberg Reports

Chevron Corporation (NYSE:CVX) is among the 13 Best Hydrogen and Fuel Cell Stocks to Buy According to Analysts. It has disclosed plans to lay off 200 people in the Permian Basin, revising the Texas Workforce Commission’s prior, inaccurate announcement of 800 layoffs.

A tanker truck making its way through a refinery facility. .

The company informed the commission and explained the disparity. These layoffs are a part of its larger restructuring initiative, which aims to cut costs by $3 billion and reduce its global workforce by 20%, or 9,000 employees, by the end of 2026.

The action is a reflection of Chevron Corporation (NYSE:CVX)’s strategic change toward operational efficiency in the face of volatile oil prices. The business is simplifying its operations under CEO Mike Wirth in order to increase free cash flow.

It is anticipated that the Permian Basin, a key production center for Chevron Corporation (NYSE:CVX), will produce one million barrels of oil equivalent per day, or almost one-third of the world’s total production. The company expects a plateau later this decade, despite the fact that production is increasing. The impacted employees are receiving transition assistance and severance payments from the company.

Chevron Corporation (NYSE:CVX) is a major producer of hydrogen, producing around 1 million tonnes a year, mostly for use in refining processes. The company plans to grow its hydrogen business and supply hydrogen to a wider consumer base by utilizing its existing refineries, distribution networks, sales channels, and well-known brand.

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