Chevron restructures to save $3 billion by 2026

Chevron Corp. is restructuring to centralize business units, aiming to save up to $3 billion by 2026. Shale assets in Texas, Colorado, and Argentina will be consolidated, and service centers in Manila and Buenos Aires will handle finance and HR tasks. The changes are part of a plan to reduce the workforce by 20% and cut costs.

Chevron’s moves come as investors demand more cash returns from energy companies. Despite the US leading in oil production, energy stocks make up just 3.1% of the S&P 500. Chevron’s stock has outperformed the market this year. The company is focused on efficiency and new ways of working to maintain its market position.

Similar corporate restructuring is happening at Exxon Mobil Corp. and Shell Plc. Chevron’s previous decentralized model with powerful country managers is being replaced with a more streamlined approach. The company wants to accelerate execution and use technology while maintaining local strength. Upstream division will be restructured, and business units reduced.

Chevron plans to optimize drill rig schedules globally, standardize work, and centralize operations to leverage technology more effectively. Artificial intelligence is already impacting downstream operations, with AI being used to determine optimal product mixes quickly. The company aims to enhance efficiency and innovation through these changes in its operations.

Read more at Yahoo Finance: Chevron Shifts From Local to Centralized Hubs to Cut Costs