CHEVRON said on Monday it would reorganise some of its business structures and reshuffle the leadership team, the latest move by the US energy major to simplify its operations.
The company has said it would lay off up to 20 per cent of its global workforce by the end of 2026, as it navigates cost overruns and a business that it says has become overcomplicated. Its US$53 billion acquisition of Hess has been stalled due to an arbitration battle with larger rival ExxonMobil.
“Our new organisational structure and leadership appointments are designed to improve our operational efficiency and position Chevron for sustained growth,” CEO Mike Wirth said in a statement.
The company’s oil, products and gas organisation will consist of two separate segments — upstream being the first and downstream, midstream and chemicals (DM&C) as the second.
Clay Neff, who is currently Chevron’s president of international exploration and production, will oversee upstream effective from July 1. The company said Andy Walz will continue to lead the DM&C organisation.
Chevron vice-chairman Mark Nelson will continue to oversee the overall oil, products and gas organization.
The oil and gas producer’s technical centre will also be reorganised and insider Ryder Booth will take the helm as the new unit’s vice-president on July 1.
Chevron, which moved its headquarters from San Ramon, California, to Houston and replaced several long-standing managers, is targeting up to US$3 billion in cost cuts through 2026 from leveraging technology, asset sales and changing how and where work is performed.
Last August, it announced a new hub in India which would become its largest tech centre outside the US. REUTERS
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