If Chevron aims to save $3 billion through workforce reductions, and they announced a 20% cut globally, we can estimate how much of that savings will come from U.S. employees versus international employees.
Step 1: Understanding Workforce Distribution
Chevron has 45,600 employees globally, excluding service station workers.
A significant portion of their workforce is based in the United States, where salaries and benefits are generally higher than in international locations.
Let's assume that about 50-60% of Chevron’s payroll costs are in the U.S., given the higher salaries and benefits there.
Step 2: Estimating Payroll Cost per Region
If we estimated Chevron’s total payroll cost at around $12.35 billion, and assume 55% of it is U.S.-based, then:
U.S. Payroll = $6.79 billion
Global Payroll = $5.56 billion
Step 3: Allocating the $3 Billion Savings
The 20% workforce reduction is not necessarily a 20% payroll cut, since higher-paid positions are more likely to be cut in the U.S.
Since U.S. salaries are higher, Chevron may aim for a higher % reduction in the U.S. than the global average.
Potential Payroll Cuts
If we assume 60-70% of the $3 billion savings must come from the U.S. due to higher salaries, that means $1.8B to $2.1B will be from U.S. payroll.
If U.S. payroll is $6.79B, then Chevron would need to cut 26-31% of U.S. payroll costs to reach their savings target.
This suggests that U.S. job cuts will likely be higher than 20%, potentially in the range of 26-31% of U.S. employees.
Conclusion
Chevron's global workforce reduction is set at 20%, but U.S. job cuts will likely be 25-30% to account for the higher payroll costs. This would contribute $1.8B-$2.1B toward the $3 billion cost-saving target.
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