Chevron recently announced plans for significant restructuring, including $1.5 billion in Q4 charges primarily from workforce reductions planned over the next two years. While they haven't shared specific numbers, these changes are part of their larger goal to reduce costs by $3 billion through 2026.

In parallel, Chevron is trimming their 2025 capital budget by $2 billion to between $14.5 and $15.5 billion. CEO Michael Wirth explained in a recent statement that this reflects the completion of major projects and strategic asset sales, emphasizing their "commitment to cost and capital discipline."

For employees who might be affected by these changes, understanding Chevron's Surplus Employee Severance Pay (SESP) Plan will be essential. The 2025 plan covers notifications from January 1 to December 31, 2025, with terminations completing by December 31, 2026. To qualify for severance benefits, you'll need to complete and submit the Settlement Agreement and General Release on time, among other requirements.

Chevron's 2025 Layoffs: The Latest Updates

Chevron kicked off these changes in December 2024 by announcing the reduction in their 2025 capital budget. This connects to their broader strategy of cutting $3 billion in structural costs by 2026, affecting positions across their global operations. While specific numbers aren't public yet, the company is taking a $1.5 billion charge in Q4, mainly for planned job cuts and relocations over the next two years.

Adding to these changes, Chevron is moving their headquarters from San Ramon to Houston over a five-year period. This move aims to bring senior leadership closer together, with CEO Mike Wirth and Vice Chairman Mark Nelson relocating to Houston by year-end.

Understanding Chevron's Severance Packages

Historical Trends

Based on what employees have shared, here's how Chevron's severance has evolved:

Standard Package Structure

Typically, Chevron offers 2 weeks of base pay for each year of service, maxing out at 52 weeks.

2020 Enhanced Package

During the 2020 reductions, they increased this to 3 weeks of base pay per year of service.

Recent Changes

Several important shifts have emerged in how Chevron handles severance:

• Department-Level Reductions: Recent layoffs have happened by department and business unit, which some see as moving away from company-wide severance policies.
• Relocation Impact: San Ramon employees received Houston relocation offers without severance options. Turning down relocation counts as resigning, which affects severance eligibility.
• Voluntary Options: The company sometimes offers voluntary separation opportunities, though approval rates and terms vary.

What Shapes Your Package

Your severance can vary based on:

• Location: Different regions often have different policies - Chevron Canada operates differently than U.S. locations.
• Time at the Company: Package structures often differ between recent hires and long-term employees.

As these policies continue to evolve, checking current company communications or speaking with HR remains your best source of information.

Industry Comparison: Shell, ExxonMobil, and BP

Let's look at how severance packages compare across major energy companies:

Shell

• Standard Approach: Usually offers 3 weeks of base pay per year of service, maxing out at 78 weeks (1.5 years) based on employee discussions.
• Recent Changes: Signs point to possible reductions to legal minimums and fewer voluntary options in recent restructuring.

ExxonMobil

• Previous Standard: Used to provide 1 month per year, stopping at 24 months. Their approach to handling equity compensation has typically been more generous than industry averages.
• Current Packages: Recent severance offers have decreased, with some as low as 3 months total.

BP

BP's severance packages are also fairly typical, though on the generous side for the energy industry:

• Standard two weeks per year in most locations
• Health benefits matching severance duration

UK employees had special terms, getting three weeks per year (up to two years' pay) through their enhanced redundancy program.

Key Factors to Consider

Packages often vary based on:

• Local Laws: Regional requirements make a big difference. For example, New Jersey's WARN Act meant specific severance rules for ExxonMobil's Clinton facility employees.
• Company Performance: Strong financial years sometimes mean better packages, including occasional inflation adjustments.

What to Expect from Chevron's 2025 Severance

Drawing from past practices and recent announcements:

Financial Support

• Base Severance: Likely to continue with 2 weeks' base pay per year, with an 8-week minimum and 52-week maximum.

Healthcare Coverage

• COBRA Benefits: History suggests up to one year of coverage for eligible employees.

Important Details

• Timeline: The 2025 SESP Plan covers notifications throughout 2025, with terminations finishing by end of 2026.
• Requirements: You'll need to meet specific criteria and submit all documentation correctly and on time.

Moving Forward

While Chevron's 2025 reductions will affect many employees, their track record suggests meaningful support for those transitioning out. The energy sector is evolving rapidly, and a solid severance package can give you time to plan your next move. Adding your package details to fired.fyi helps you compare offers and gain negotiation insights.

The more data we collect, the better equipped everyone is to understand fair severance terms. While this guide provides context, connecting with an employment attorney can help with your specific situation. We're confident you'll find your way through this transition to your next opportunity.