Chevron said on Monday it would reorganize some of its business structures and reshuffle the leadership team, the latest move by the U.S. energy major to simplify its operations.
The company has said it would lay off up to 20% of its global workforce by the end of 2026, as it navigates cost overruns and delays in a large Kazakhstan project. Its $53 billion acquisition of Hess has been stalled due to an arbitration battle with larger rival Exxon Mobil.
“Our new organizational structure and leadership appointments are designed to improve our operational efficiency and position Chevron for sustained growth,” CEO Mike Wirth said in a statement.
The company’s Oil, Products and Gas organization will be consolidated into two separate segments – Upstream and Downstream, Midstream & Chemicals (DM&C). Mark Nelson will continue to lead it as its executive vice president.
The oil and gas producer’s technical center will also be reorganized and insider Ryder Booth will take the helm as the new unit’s vice president, effective July 1.
Chevron, which moved its headquarters from San Ramon, California, to Houston and replaced several long-standing managers, is also targeting up to $3 billion in cost cuts through 2026 from leveraging technology, asset sales and changing how and where work is performed.
Last August, it announced a new hub in India which would become its largest tech center outside the U.S.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Vijay Kishore and Sriraj Kalluvila)