Chevron Continues to Shrink Biodiesel Business, Announces Layoffs

Chevron is set to lay off 70 employees at the headquarters of its Renewable Energy Group (REG) in Ames, Iowa, according to a Worker Adjustment and Retraining Notification (WARN) filed with the Iowa Workforce Development Department. The layoffs are scheduled for June 18, 2024, and have been confirmed by a company spokesperson.

In a statement, Chevron said it is streamlining its operations to enhance efficiency and long-term competitiveness: “As previously announced, we expect these efforts will result in job reductions starting in 2025.”

Back in February 2024, Chevron announced plans to optimize its portfolio, leverage technology to improve productivity, and shift how and where work is done, including expanding the use of global service centers. The company anticipates reducing its workforce by 15% to 20% by the end of 2026, in line with its goal of cutting $2–3 billion in structural costs.

These moves follow Chevron’s $3.15 billion acquisition of REG in mid-2022. Since then, the company has been scaling back its biodiesel operations:

• In early 2024, Chevron announced the closure of its biodiesel plant in Ralston, Iowa.

• Around the same time, it shut down another facility in DeForest, Wisconsin.

• In July 2024, Chevron will cease production at its biodiesel plant in Erding, Germany.

The layoffs and plant closures signal a strategic retreat from conventional biodiesel operations as Chevron pivots toward more streamlined and profitable business segments.