Chevron plans to lay off up to 20 percent of its workforce, according to a company spokesperson.

Vice Chairman of the Chevron Corp., Mark Nelson, said that the company “is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness” in a statement emailed to The Hill.

“This work includes optimizing the portfolio, leveraging technology to enhance productivity, and changing how and where work is performed, including the expanded use of global centers,” Nelson added. “We believe changes to the organizational structure will improve standardization, centralization, efficiency and results, unlocking new growth potential and helping Chevron drive industry-leading performance now and into the future.”

Nelson added that those “actions” are predicted to cause 15 to 20 percent depletions in the workforce starting this year, the majority being done “before the end of 2026.” 

As of October 2023, the company reported to employ approximately 45,511 people across 51 countries.

Chevron’s CEO, Michael Wirth, warned last January that tensions occurring at the time in the Red Sea posed “very real” risks to oil flows as well as prices, as Houthi rebels boosted attacks against Israel and commercial shipping in the area.

Three years ago, Chevron posted record profits of $35.5 billion, with the earnings in 2022 being over two times those of the previous year. However, the company’s stock fell 3.9% in January after its first loss in four years.