Shares of oil and gas major, Chevron Corporation ( CVX ) are trading higher on Monday.

The company revealed major changes to its leadership structure as part of efforts to optimize its organizational setup and enhance long-term competitiveness.

Chevron ( CVX ) is consolidating its Oil, Products & Gas division into two segments: Upstream and Downstream, Midstream & Chemicals.

The company stated that this move is designed to streamline operations, speed up decision-making, and set the company up for future growth and success.

Chevron ( CVX ) has appointed Mark Nelson to remain at the helm of the Oil, Products & Gas division as vice chairman and executive vice president.

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He will manage the company's updated strategy for splitting the Upstream and Downstream, Midstream & Chemicals sectors, a move aimed at improving standardization across regions and boosting efficiency.

Clay Neff, who currently serves as the president of International Exploration and Production, will take on the role of president of Upstream starting July 1, 2025. Meanwhile, Bruce Niemeyer, president of Americas Exploration and Production, will be assigned to lead Shale & Tight operations starting on the same date.

In addition, the Downstream, Midstream & Chemicals organization will undergo significant changes. Andy Walz will continue to serve as president, overseeing vital work processes related to operations, commercial activities, and customer value chain optimization.

“Our new organizational structure and leadership appointments are designed to improve our operational efficiency and position Chevron ( CVX ) for sustained growth,” said CEO and Chairman Mike Wirth.

It is to be noted that Chevron ( CVX ) recently said it is planning to begin layoffs this year, with most expected to be completed by the end of 2026.

This initiative is part of a larger cost-reduction strategy, with the company aiming to save between $2 billion and $3 billion by 2026.

In its fourth-quarter earnings, the company posted an adjusted EPS of $2.06, missing the consensus of $2.11.

Price Action: CVX shares are trading higher by 0.78% at $158.14 at last check Monday.

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