Chevron, Colorado’s largest oil and gas producer, plans to lay off about 125 employees in its Denver office starting July 1 as part of an effort to cut costs companywide.
The company said in a letter to the Colorado Department of Labor and Employment that the job cuts would be permanent and that the employees aren’t members of a union.
The announcement comes as oil prices hit a four-year low, hovering at around $60 a barrel Tuesday.
“Chevron will try to redeploy employees to other Chevron locations, which may reduce the number of layoffs at this location,” the company said in the notice, required under the Colorado Worker Adjustment and Retraining Notification Act.
Most of the Colorado workforce that manages day-to-day operations and regulatory compliance should be largely unchanged, Trudi Lewis Boyd, Chevron’s corporate affairs manager, said in an email. A number of Denver positions will move to the company’s headquarters in Houston as part of the reorganization
Employees laid off will be offered severance as well as supplemental assistance for medical continuation coverage, Chevron said.
“Of course, any workforce reduction is a difficult decision, and we do not make it lightly,” Boyd said.
Earlier this year, Chevron said it planned to reduce its overall workforce up to 20% and to slash costs up to $3 billion by the end of 2026. The Wall Street Journal reported that roughly 8,000 employees could be affected.
Chevron said in February that it is changing its organizational structure to rely more on global centers around the world. The company had approximately 45,300 employees at the end of 2024.
In Colorado, Chevron’s operations are centered in the Denver-Julesburg formation in the northeastern part of the state. Chevron has access to roughly 600,000 acres in the basin, according to its website.
In 2023, Chevron acquired PDC Energy in a $7.6 billion deal that made it the largest oil and gas company in Colorado.
