More than 500 Houston-based employees will be without a job after Chevron merger

HOUSTON, Texas (KTRK) -- There's been an energy industry shake-up this week. About a year after announcing a headquarters move to Houston and just days after officially merging with Hess, the oil industry giant Chevron said it is now laying off over 500 employees here in Houston, come September.

"I just think that the Chevron, Hess transaction is just a snapshot of what we're seeing globally," Bob Cavnar, an energy industry veteran, said.

A federally required notice filed earlier this week with the Texas Workforce Commission reveals 575 Chevron Houston employees will be laid off. It comes after the company officially merged with Hess.

Chevron said in a statement:

"Chevron completed the merger with Hess Corporation on July 18. We are working quickly to integrate the Hess workforce and are focused on maintaining safe and reliable operations throughout the transition period.

As part of the integration, we will consolidate or eliminate some positions. As required by the WARN Act, Chevron has provided notice of a planned workforce reduction to appropriate state and local government representatives for Downtown Houston and North Dakota.

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. Our priority is to support our employees through this transition. We are offering severance benefits and outplacement support."

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Energy industry expert Bob Cavnar said it could have a trickle-down effect in Houston.



"Houston's ridden that oil and gas price curve for many, many years. And now we write, we're riding not only the price curve, but we're riding the technology curve also," Cavnar said.



Cavnar said that as artificial intelligence evolves, it's impacting jobs, but he also says that's the case for those drilling for oil and gas.

"The service companies that serve the industry have also had to very rapidly change," Cavnar said.

"It definitely has a trickle-down effect. It has a ripple effect through the supply and value chain," Abhi Rajendran with Rice University's Baker Institute said.

Rajendran also says the public could see a change in cost.

"When you have the supply pull back and then pull back from companies. Generally, that kind of starts a new cycle or higher prices, so that's something that I do expect," Rajendran said.



According to the notice, the Chevron employees' last day will be Sept. 26.

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