A Chevron sign advertises regular gasoline for $3.89 per gallon and diesel for $3.46 per gallon near 51st Avenue and Interstate 10 in Phoenix on June 16, 2023.
San Ramon, California – Chevron has announced plans to lay off approximately 600 employees from its former headquarters in San Ramon, California, as part of its broader strategy to cut 15 to 20 percent of its global workforce by the end of 2026. The move comes as the oil giant continues its transition away from the Golden State, having previously declared its intention to relocate its headquarters to Houston, Texas, over the next five years.
The layoffs, which will begin on June 1, were formally disclosed to California officials in a Worker Adjustment and Retraining Notification (WARN) notice filed on March 27. The job cuts are part of Chevron’s efforts to streamline operations, cut $3 billion in costs, and improve long-term competitiveness. The company has cited rising operational costs, project delays, and diminishing oil and gas reserves as key reasons for its restructuring.
Chevron’s state government affairs manager, Henry Perea, stated in the WARN notice that affected employees will be provided with extended medical benefits, access to education and training programs, and career transition services. However, he also warned that additional layoffs in California may follow, although specific numbers have not yet been determined.
The oil and gas giant has been facing financial challenges, including cost overruns in a major oil field project in Kazakhstan. Additionally, Chevron has reported its lowest level of oil and gas reserves in at least a decade. Despite these challenges, the company reported a net income of $17 billion for 2024, down from a record $35.5 billion in 2022, but still one of the strongest years in its history.
Chevron CEO Mike Wirth has been vocal about his concerns regarding California’s business environment, citing policies that he believes increase costs, hurt consumers, and discourage investment. “We believe California has a number of policies that raise costs, that hurt consumers, that discourage investment and ultimately we think that’s not good for the economy in California and for consumers,” Wirth told The Wall Street Journal in February.
While Chevron has assured that jobs related to California’s refineries will remain intact, industry analysts warn that cost-cutting measures could impact production levels, potentially leading to higher gas prices in the state.
Chevron’s decision to relocate to Houston follows a trend among major corporations seeking lower operating costs and a more business-friendly regulatory environment. The Texas city is home to the company’s largest U.S. workforce, with approximately 7,000 employees. Chevron spokesperson Randy Stuart described the headquarters move as a continuation of a decade-long trend, citing Houston’s affordability, proximity to key industry counterparts, and strong energy sector infrastructure.
Meanwhile, Chevron’s proposed $53 billion acquisition of Hess Corporation remains under regulatory review. While the company has suggested that “synergies” could be realized through the deal, it has not explicitly linked the San Ramon layoffs to the acquisition.
