Chevron Corp. is set to reduce its workforce in the Permian Basin, its most significant oil-production operation globally, by nearly 800 employees. The substantial layoffs, primarily impacting the company’s Midcontinent campus on the outskirts of Midland, Texas, are slated to take effect on July 15, 2025, according to a filing with the Texas Workforce Commission.

This decision is a key component of Chevron’s broader overhaul, which aims to trim its global workforce by as much as 20%, or approximately 9,000 individuals, by the end of 2026. The oil giant is aggressively pursuing a target of $3 billion in structural cost reductions to enhance operational efficiency and bolster its resilience against potential fluctuations in oil prices.

"Chevron is taking action to simplify our operating model, execute work faster and more effectively," the company stated, acknowledging the difficult nature of the decision. "This is a difficult decision, and we do not make it lightly." The company has indicated that affected employees will be offered severance benefits and support for their job search.

The Permian Basin has been a cornerstone of Chevron's production growth in recent years, with output on track to reach 1 million barrels of oil equivalent per day in the coming months, accounting for nearly a third of the company's total global output. However, Wirth has previously indicated a shift in focus for the Permian operation, expecting it to plateau in the latter half of the 2020s as the company prioritizes reduced spending and increased free cash flow over aggressive production growth.

The layoffs in the Permian Basin are part of a wider trend for Chevron, which has already announced similar workforce reductions in other locations, including California earlier this year. This move also comes amidst a period of considerable activity and some uncertainty for the company, including ongoing arbitration related to its proposed $53 billion acquisition of Hess Corporation, a deal critical for securing a significant stake in Guyana’s lucrative oilfields.

The oil and gas industry as a whole has seen a push towards greater efficiency and, in some cases, consolidation. Competitors like Exxon Mobil have also undertaken significant workforce reductions even as production has surged, driven by factors such as technological advancements that require fewer workers per barrel produced, and a renewed emphasis on profitability.

While Chevron emphasizes its commitment to supporting its employees through this transition, the significant job cuts will undoubtedly have an impact on the local economy in Midland, Texas, a hub for Permian Basin operations.