HOUSTON - The US oil giant Chevron said Wednesday that it will lay off 15 percent to 20 percent of its 40,000-strong global workforce by the end of 2026.

Chevron, which recently moved its headquarters from San Ramon, California, to Houston, Texas, said the lay-off will lower costs and simplify operations.

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"Chevron is taking action to simplify our organizational structure, execute faster and more effectively, and position the company for stronger long-term competitiveness," said Chevron vice-chairman Mark Nelson in a statement.

"We do not take these actions lightly and will support our employees through the transition," said Nelson.

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The oil giant told employees during an internal town hall meeting that buyouts are open now through April or May, according to a report from Chron, a Houston-based news website which was once the digital home for the Houston Chronicle.

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As a result, 6,000 to 8,000 employees will lose their jobs as the company seeks to save $2 billion to $3 billion by the end of 2026 by leveraging technology, asset sales, and reorganizing its business. The oil giant is expected to announce a new leadership structure in two weeks.

Chevron's fuel business posted a loss of 248 million dollars for the 2024 fiscal year, compared with a profit of 1.15 billion dollars in fiscal 2023, as refining margins have fallen, according to the report.