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– Chevron Corporation, one of the world’s leading integrated energy companies, has announced plans to lay off nearly 800 employees in Texas as part of a sweeping global restructuring effort. The cuts, primarily targeting the Permian Basin, underscore the challenges facing the oil and gas industry as companies grapple with low oil prices, regulatory pressures, and strategic realignments. This move follows a series of layoffs across the sector, with other exploration and production (E&P) companies and oilfield service providers also reducing their workforces in the United States.
Chevron’s Job Cuts: Details and Locations
According to a filing with the Texas Workforce Commission, Chevron will eliminate nearly 800 jobs in Midland County, Texas, with the layoffs centered at its Midcontinent campus on the outskirts of Midland. The Permian Basin, the top U.S. oilfield, is a key operational hub for Chevron, making these cuts particularly significant. The layoffs are scheduled to take effect on July 15, 2025, and are part of Chevron’s broader plan to reduce its global workforce by up to 20%—potentially affecting 9,000 of its 45,600 employees—by the end of 2026.
Chevron’s restructuring aims to “simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness,” according to a company spokesperson. The cuts in Texas follow earlier announcements of layoffs in other regions, including 600 jobs in San Ramon, California, 700 in Houston, Texas, and smaller reductions in Richmond, Kern County, and Los Angeles County, California, as well as 125 in Denver, Colorado.
The company’s relocation of its corporate headquarters from San Ramon to Houston, completed in 2024, reflects a strategic shift toward a more business-friendly environment in Texas. However, the layoffs indicate that even in its new hub, Chevron is not immune to the economic pressures affecting the industry.
Industry-Wide Layoffs: A Broader Trend
Chevron’s job cuts are not an isolated event but part of a wider wave of layoffs sweeping through the U.S. oil and gas sector. The industry is facing a perfect storm of challenges: oil prices hovering around $60-$63 per barrel, net-zero regulations, and geopolitical uncertainties, including Chevron’s operational setbacks in Venezuela and uncertainties surrounding its $53 billion proposed acquisition of Hess Corporation.
Other E&P companies and oilfield service providers have also announced significant workforce reductions in 2025:
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ConocoPhillips: Following its $23 billion acquisition of Marathon Oil, ConocoPhillips plans to reduce its workforce to streamline operations and cut costs. The exact number of layoffs remains undisclosed, but the move reflects broader industry trends. With approximately 11,800 employees as of late 2024, the company is navigating financial pressures amid low oil prices.
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APA Corporation: In early 2025, APA confirmed the layoff of nearly 300 employees globally as part of cost-cutting measures announced in January. The U.S.-based company, with operations in the U.S., Egypt, and the UK, is responding to economic challenges and regulatory pressures.
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BP: In January 2025, BP announced plans to cut nearly 8,000 jobs globally, including 4,700 direct employees and 3,000 contractors. The reductions are part of a strategic overhaul to adapt to the evolving energy landscape and maintain profitability.
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SLB (Schlumberger): The oilfield services giant has also initiated layoffs in 2025, though specific figures are not publicly detailed. These cuts align with the company’s efforts to manage costs in a low-price environment.
The oilfield services sector, which supports E&P companies with drilling, completion, and production services, is particularly vulnerable. Companies like SLB, Halliburton, and Baker Hughes have faced reduced demand for services as E&P firms scale back drilling programs in response to lower oil prices and investor pressure to prioritize returns over growth.
Economic and Policy Context
The current wave of layoffs comes as oil prices remain stubbornly low, with West Texas Intermediate (WTI) crude trading around $60 per barrel, a four-year low. This price level strains the profitability of many U.S. shale operations, particularly in high-cost regions. Additionally, geopolitical factors, such as Chevron’s expiring license to operate in Venezuela and Kazakhstan’s overproduction within OPEC+ quotas, add complexity to the industry’s outlook.
Policy changes under the Trump administration, including tariffs and efforts to reduce federal spending, are also impacting the broader economy. While the administration has signaled support for the oil and gas industry, proposed tariffs could increase costs for equipment and materials, further squeezing margins. Meanwhile, the Department of Government Efficiency (DOGE), led by Elon Musk, has driven significant federal job cuts, contributing to a broader sense of economic uncertainty.
Impact on Workers and Communities
The layoffs at Chevron and other companies will have a profound impact on workers and communities, particularly in oil-dependent regions like the Permian Basin. Midland, Texas, a hub of oilfield activity, faces economic ripple effects as reduced employment impacts local businesses and services. Chevron has indicated it will attempt to redeploy some employees to other locations, but the cuts are characterized as permanent, offering little reassurance to affected workers.
Industry observers note that the layoffs reflect a structural shift in the oil and gas sector. “This is the calm before the storm,” said Mark Zandi, chief economist at Moody’s Analytics, warning of further economic fallout from trade policies and reduced federal spending. As companies prioritize efficiency and cost-cutting, workers with specialized skills may struggle to find comparable roles in a contracting industry.
Looking Ahead
Chevron’s announcement of nearly 800 job cuts in Texas is a stark reminder of the oil and gas industry’s ongoing transformation. As E&P companies like ConocoPhillips, APA, and BP, and oilfield service providers like SLB, follow suit with their own layoffs, the sector faces a challenging path forward. The combination of low oil prices, regulatory pressures, and geopolitical uncertainties suggests that workforce reductions may continue into 2026.
For now, the industry’s focus is on resilience. Chevron’s restructuring, including its headquarters move and cost-cutting measures, aims to position the company for long-term competitiveness. However, the human toll of these decisions is undeniable, and communities like Midland will bear the brunt of the industry’s adjustments.
Energy News Beat will continue to monitor layoffs and other developments in the oil and gas sector. Stay tuned for updates on how these changes shape the future of energy in the U.S. and beyond.
Sources:
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Reuters, “Chevron to cut nearly 800 jobs in Texas”
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Bloomberg, “Chevron Gives Notice of Nearly 800 Job Cuts in Permian Basin”
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Finance Yahoo, “ConocoPhillips plans layoffs as part of restructuring effort”
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Finance Yahoo, “US oil company APA cuts around 300 jobs globally”
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Al Jazeera, “Even as US slashes jobs, ‘it is the calm before the storm’”
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