Chevron (CVX.N), opens new tab said on Monday it would reorganize some of its business structures and reshuffle the leadership team, the latest move by the U.S. energy major to simplify its operations.

The company has said it would lay off up to 20% of its global workforce by the end of 2026, as it navigates cost overruns and a business that it says has become overcomplicated. Its $53 billion acquisition of Hess (HES.N), opens new tab has been stalled due to an arbitration battle with larger rival Exxon Mobil (XOM.N), opens new tab.

?Our new organizational structure and leadership appointments are designed to improve our operational efficiency and position Chevron for sustained growth,? CEO Mike Wirth said in a statement.

The company's oil, products and gas organization will consist of two separate segments ? upstream being the first and downstream, midstream and chemicals (DM&C) as the second.

Clay Neff, who is currently Chevron?s president of international exploration and production, will oversee upstream effective July 1. The company said Andy Walz will continue to lead the DM&C organization.

Chevron Vice Chairman Mark Nelson will continue to oversee the overall oil, products and gas organization.

The oil and gas producer?s technical center will also be reorganized and insider Ryder Booth will take the helm as the new unit?s vice president on July 1.

Chevron, which moved its headquarters from San Ramon, California, to Houston and replaced several long-standing managers, is targeting up to $3 billion in cost cuts through 2026 from leveraging technology, asset sales and changing how and where work is performed.

Last August, it announced a new hub in India which would become its largest tech center outside the U.S. (Reuters)

Update news