By Sheila Dang
HOUSTON (Reuters) -Chevron leaders told Hess employees to stay focused on safe operations and that they will hear next week if they will continue to have jobs following the oil producer’s acquisition, according to two Hess employees who spoke with Reuters.
Chevron, the second-largest U.S. oil producer, closed its $55 billion acquisition of Hess on Friday after prevailing in a landmark legal fight against Exxon Mobil that delayed the closing by over a year.
The deal was critical to Chevron CEO Mike Wirth’s strategy to improve the business as it sought to cut costs and faced investor concerns about future growth prospects.
The company will lay off 575 Hess employees in Houston effective September 26, according to a notice filed with the Texas Workforce Commission, or about 32% of staff based on Hess’ headcount at the end of last year.
During town hall meetings at Hess’ Houston office on Tuesday, Chevron representatives presented a slide that showed safety incidents have risen during volatile periods historically, cautioning them to continue prioritizing safety, according to the two employees, who declined to be named to discuss an internal meeting.
Hess staff were told they will be notified next week if they have a full-time position with the company moving forward or a short-term role to help with the transition.
“These are difficult decisions which we do not make lightly,” a Chevron spokesperson said, adding the company will offer severance and other support.
The emphasis on safety comes after Wirth warned Chevron employees earlier this year that the company saw an increase in close calls that could have resulted in serious injuries or fatalities.
Chevron and Hess staff were asked not to contact each other until the integration is complete, according to the two Hess employees and an internal Chevron message that Reuters reviewed.
“We need them to focus on safe operations and on navigating the complex changes that result from this merger,” said the internal Chevron message.
(Reporting by Sheila Dang in Houston;Editing by Marguerita Choy)
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