The Houston-based energy giant Chevron will lay off 575 employees from the Downtown Hess Tower following its $53 billion acquisition of Hess Corp., according to the company.
The company disclosed the layoffs—the second round of layoffs announced in just over two months—in a Worker Adjustment and Retraining Notification (WARN) letter sent July 18 to the Texas Workforce Commission. The affected employees work at 1501 McKinney St., where Hess previously operated its Houston office. The layoffs will begin on Sept. 26 and are permanent.
"As part of the integration, we will consolidate or eliminate some positions," Chevron said in a statement. "These are difficult decisions which we do not make lightly. We understand the impact this news may have on employees, their families and the communities where we operate."
Employees affected by the cuts do not have bumping rights and are not part of a union. Bumping rights allow laid-off employees to take over the jobs of less senior workers within the company. Chevron said in a statement that it is working to integrate the Hess workforce and maintain safe operations during the transition. The company said some positions will be consolidated or eliminated as part of that process.
Chevron also plans to lay off employees in North Dakota as part of the broader integration. The company said it will provide severance packages, health coverage support, and job transition services to those affected.
The layoffs follow Chevron's plan to cut between $2 billion and $3 billion in structural costs and reduce up to 20 percent of its workforce by the end of 2026.
The layoffs come amid a wave of consolidation and cost-cutting in the oil and gas industry that has led to job losses across the Houston region. Earlier this year, Exxon Mobil laid off at least 400 employees in Texas after completing its $59.5 billion acquisition of Pioneer Natural Resources. ConocoPhillips announced plans to cut more than 500 jobs following its $22.5 billion acquisition of Marathon Oil. Encino Energy, another Houston-based firm, announced 121 layoffs following the sale of assets to EOG Resources in a $5.6 billion deal.
BP and Shell have also announced significant workforce reductions, with Shell reportedly targeting upstream jobs in Houston as part of a broader restructuring.
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