Oil giant Chevron sent a notice to authorities on May 16 announcing the company’s plans to release 200 workers employed in its Midland-area operations in order to boost revenues.
Chevron announced plans to slash its global workforce in February in order to “cut costs and simplify the business,” and in April the company announced it would lay off about 600 employees in California as the company moved corporate operations to Houston.
According to earnings reports, Chevron’s net income for 2024 was $17.7 billion, a decrease of 17 percent compared to 2023. This resulted in a profit margin of 8.7 percent, down from 11 percent the year before.
The company cited higher expenses as the main reason for diminished earnings.
According to industry experts, the company is feeling pressure after Venezuela revoked its license to operate in that country, and a planned acquisition of the Hess Corporation, valued at $53 billion, is stalled in arbitration talks with Exxon Mobil over offshore properties in Guyana’s Stabroek Block oilfiled.
This however conflicts with the overview of Chevron’s business provided to shareholders May 28, during their annual meeting.
“Our strong performance in 2024 and through the first quarter reflects strong project execution and cost and capital discipline,” said Mike Wirth, Chevron’s chairman and chief executive officer. “We appreciate the confidence our stockholders have shown in our governance and performance and look forward to continuing to deliver industry-leading value.”
In early May, Chevron reported its lowest first-quarter profits since 2021, an adjusted profit of $2.18 per share on $47.61 billion in revenue, coming in under analysts predicted revenue of $48.66 billion.
According to information from the company, Chevron is one of the largest producers in the Permian Basin with 100-years of experience in the region. In 2023, the company’s production in the Permian averaged 783,000 barrels of oil equivalent per day.
— From wire reports and the Texas Workforce Commission.
