Chevron's Texas Job Cuts: What's Really Driving the Layoffs?

Globe and Mail

3 hours ago

Chevron Corporation CVX is moving forward with significant layoffs in Texas, shedding roughly 200 positions in Midland by July 15, 2025. This round of job cuts is part of the oil giant's broader global restructuring plan, targeting a 15% to 20% reduction in headcount, up to 9,000 employees, by the end of 2026. While Chevron initially reported 799 job losses in Midland to the Texas Workforce Commission, the figure was later revised due to a data error. Most of the affected roles are based at Chevron's Mid-Continent campus on Deauville Boulevard, with additional cuts across nearby operational sites.
The company's rationale is clear: simplify the operating structure, increase execution speed, and maintain long-term competitiveness. As Chevron integrates new technologies and rethinks where and how work gets done, it aims to centralize key functions and expand its global service hubs. For Midland, a critical point in Chevron's Permian Basin footprint, signals a shift toward leaner on-the-ground operations and heavier reliance on centralized decision-making.
Chevron is offering severance and transition assistance, but the scale and cadence of layoffs across California and Texas highlight just how deep its cost-cutting agenda runs. With more cuts expected through 2026, Chevron's restructuring may redefine how it operates across key U.S. basins.
How Other 'Big Oil' Peers Are Reshaping Their Workforces
ExxonMobil XOM, Chevron's primary competitor, has taken a deliberate and methodical path in reshaping its workforce, steering clear of sweeping layoffs seen elsewhere in the industry. Rather than focusing on broad structural cuts, ExxonMobil ties reductions to individual and business performance, with most changes occurring outside the U.S. Over the past two years, ExxonMobil has quietly trimmed headcount while leaning on technology to streamline operations globally.
European supermajor Shell SHEL has also been undergoing workforce transformation. After Shell's new CEO, Wael Sawan, took office, the company has been focusing on creating more value for its shareholders by improving its performance and simplifying its business operations. A central element of Shell's strategy involves streamlining operations and consolidating management to reduce expenses, with a particular focus on regions where operating costs are higher.
CVX's Price Performance, Valuation and Estimates
Shares of Chevron have lost around 3% year to date.
From a valuation standpoint, Chevron's forward 12-month P/E multiple stands at over 18X, well above the subindustry. CVX carries a Value Score of D.
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The Zacks Consensus Estimate for Chevron's 2025 earnings implies a 32% decline year over year.
The stock currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).