Chevron restructures its business and reshuffles the leadership

Chevron announced on Monday that it will reorganize its business structures, and reshuffle its leadership team. This is the latest step taken by the U.S. oil major to streamline its operations.

As it deals with cost overruns, delays and delays on a major Kazakhstan project, the company said that it could lay off as much as 20% of its worldwide workforce by 2026. The $53 billion purchase of Hess by Exxon Mobil has been delayed due to an arbitral battle.

In a press release, CEO Mike Wirth stated that "our new organizational structure and appointments of leadership are designed to improve operational efficiency and position Chevron in a sustained growth environment."

Oil, Products and Gas will be consolidated in two segments - Upstream and Downstream, Midstream & Chemicals. Mark Nelson, the company's executive vice president, will continue to be in charge.

Ryder Booth, an insider who has worked for the oil and gas industry since the 1970s, will be the new vice president of the technical center. This will happen on July 1.

Chevron has moved its headquarters to Houston from San Ramon in California and replaced several longtime managers. It also targets up to $3 billion of cost savings through 2026 by leveraging technology, selling assets and changing the way and where work is done.

It announced in August that it would be opening a new tech hub in India, which will become the largest outside of the U.S.

(source: Reuters)