Chevron Plunges 3.23% Amid Layoffs, Asset Sales

On April 4, 2025, Chevron's stock experienced a significant drop of 3.23% in pre-market trading, marking a continuation of its downward trend over the past two days.

Chevron's recent stock performance has been influenced by several key factors. The company's decision to lay off approximately 600 employees at its former headquarters in San Ramon, California, is part of a broader strategy to streamline operations and cut costs. This move is expected to reduce the global workforce by 15% to 20%, affecting thousands of employees across different departments and regions. The layoffs are set to begin on June 1, 2025, and are part of Chevron's efforts to enhance long-term competitiveness in the evolving energy market.

Additionally, Chevron's recent transaction with Tokyo Gas, involving the sale of a 70% stake in its natural gas assets in East Texas, has also impacted its stock price. While the transaction is not directly related to U.S. government policies, it reflects the company's strategic shift towards liquid natural gas exports to Japan. This move could influence global natural gas supply dynamics and indirectly affect Chevron's market position.

Furthermore, the volatility in the international oil market has added to the pressure on Chevron's stock. Despite recent fluctuations in oil prices, Chevron's performance has been inconsistent, reflecting investor uncertainty about the future of the oil and gas industry. Factors such as geopolitical risks, oil price volatility, and changing global demand continue to pose challenges for the company.