Chevron, the second-largest U.S. oil and gas company, said on Wednesday that it would lay off as much as 20 percent of its work force as part of a broader cost-cutting effort.

The company, which employed roughly 45,600 people at the end of 2023, said that it expected the cuts to take place over the next two years.

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

Chevron recognized $715 million in severance charges in fourth quarter of 2024.

This is a developing story. Check back for updates.