Chevron Corporation (CVX.N) has instructed employees of Hess Corp. to maintain a focus on operational safety as the company prepares to announce job decisions next week following its $55 billion acquisition of the oil producer. The deal was finalised on Friday after a prolonged legal battle with ExxonMobil (XOM.N) that delayed its closure by over a year.
This major acquisition forms a key part of Chevron’s strategy under CEO Mike Wirth, aimed at cutting costs and addressing investor concerns about the company’s long-term growth. The deal will result in the loss of 575 jobs, or approximately 32% of Hess’ workforce in Houston, with layoffs scheduled to take effect on September 26, according to a notice filed with the Texas Workforce Commission.
In a town hall meeting held Tuesday at Hess’ Houston office, Chevron representatives presented a slide warning employees that safety incidents tend to rise during volatile periods. The slide advised staff to remain focused on safety, even as the company navigates this complex transition. Two Hess employees, speaking anonymously, confirmed the details of the meeting to Reuters.
While Hess workers await job updates, Chevron’s leadership made it clear that they will be informed next week about whether they will continue in full-time roles or be given short-term positions to aid in the merger transition process.
A Chevron spokesperson emphasised the company’s commitment to supporting employees during this challenging period. “These are difficult decisions which we do not make lightly,” the spokesperson said, adding that severance packages and additional support will be offered to those affected by the cuts.
This renewed focus on safety comes after Wirth voiced concerns about increased “close calls” within Chevron earlier this year, highlighting the risk of incidents that could have resulted in serious injuries or fatalities. Chevron has also instructed both Chevron and Hess staff not to communicate with each other until the integration process is complete, reinforcing the need for careful navigation during the merger.
“We need them to focus on safe operations and on navigating the complex changes that result from this merger,” an internal Chevron message read, as confirmed by the two Hess employees and a Reuters review of the communication.
Chevron’s latest move is another step in its ongoing efforts to consolidate and streamline its operations in a competitive and volatile energy market.
