Chevron, one of the world’s largest oil companies, is cutting up to 9,100 jobs about 20% of its global workforce as part of a major restructuring effort.
The layoffs, which will be completed by 2026, come as the company struggles to keep pace with competitors like ExxonMobil and are part of Chevron’s larger goal of cutting costs by up to $3 billion before the end of 2026.
While these job cuts will be felt worldwide, they raise pressing questions for Africa, where Chevron plays a major role in the oil industry. The company has a strong presence in Nigeria, Angola, and other key markets, and its decision to scale back could have ripple effects on local economies, employment, and the future of the energy sector in the region.
Why Chevron is laying off staff
Chevron executives argue that the company has become too complex, leading to rising costs and slower decision making.
Despite making $36.5 billion in profits in 2022, Chevron’s earnings have since declined, falling to $17.7 billion last year. This drop is partly due to oil price fluctuations and increased competition.
In response, Chevron announced a $3 billion cost cutting plan , and now, job reductions are part of that effort. The company says it is reorganizing to be more efficient and competitive in a rapidly changing energy landscape.
Another factor behind Chevron’s decision is the stalled $53 billion acquisition of Hess Corporation, which would grant it access to Guyana’s vast oil reserves.
However, ExxonMobil and CNOOC, Hess’s partners in Guyana, have taken the deal to court, delaying the expansion.
This legal battle has added pressure on Chevron to streamline its operations.
The African connection
Meanwhile, Africa plays a critical role in Chevron’s global portfolio, especially Nigeria, where the company has been operating for decades.
Chevron has traditionally been a major investor in Nigeria’s oil industry, holding a 40% stake in key oil blocks through a joint venture with the Nigerian National Petroleum Company (NNPC).
However, in recent years, Chevron has been shifting away from onshore operations in Nigeria due to security risks, oil theft, and regulatory challenges. The company has been selling off its onshore assets and focusing more on offshore production, which is considered safer and more profitable.
What the scale back means for Africa’s oil industry
Chevron’s restructuring could have several consequences for Africa:
1. Job losses: While Chevron hasn’t specified how many African employees will be affected, its reduced operations could lead to layoffs, particularly in Nigeria and Angola. Many of these jobs are high paying positions in the energy sector, making the impact significant.
2. Lower investments: Chevron has already been reducing its spending on African onshore projects. If the layoffs signal a broader retreat, it could mean less investment in oil production and infrastructure, affecting government revenues.
3. Opportunities for local companies: On the flip side, Chevron’s exit from onshore assets opens doors for indigenous oil firms like Seplat Energy, Aiteo Group, among others.
Seplat and Aiteo have acquired assets from Shell and ExxonMobil, while Dangote’s refinery is expanding its footprint in its Nigeria’s oil sector.
4. Energy transition uncertainty: As global oil companies adjust to the evolving energy landscape, African governments need to attract new investments to ensure the industry remains competitive.
The shift toward renewable energy and cleaner technologies also raises questions about the long term future of oil jobs on the continent.
What can affected employees do?
For employees impacted by Chevron’s job cuts, this is a critical moment to prepare for the transition.
Some key steps include:
1. Exploring local oil companies: Many African energy firms are expanding as international oil giants scale down their operations. These companies may offer new opportunities
2. Upskilling for future opportunities : With the energy sector evolving, professionals should consider training in emerging areas such as renewable energy, oil technology, or project management.
3. Networking and industry connections: Keeping in touch with industry contacts, attending oil and gas conferences, and leveraging professional networks can help workers find new opportunities.
The bigger picture
Chevron’s layoffs reflect broader shifts in the global oil industry.
As companies prioritize efficiency and adapt to changing market conditions, job security in the energy sector is becoming more uncertain.
For African oil producing nations, this is a wake up call to strengthen local industries, invest in energy diversification, and create policies that support workers affected by corporate restructuring.
While Chevron’s job cuts may seem like just another round of layoffs, their impact on Africa’s oil sector and the people who depend on it could be far reaching.
