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Exxon Mobil is reducing its workforce, saying that combining smaller locations into hubs would boost efficiency
Exxon Mobil will eliminate 2,000 positions as it consolidates its global operations.
The oil giant said combining smaller locations into regional hubs would improve efficiencies by bringing employees together.
Exxon Mobil (XOM) is slashing about 2,000 jobs worldwide as part of a planned reorganization, the latest sign of cutbacks at several major oil companies have reduced their workforces in recent months amid falling oil prices.
The oil giant in a statement to Investopedia confirmed an earlier report that CEO Darren Woods spelled out the decision, in which the company will consolidate smaller locations, in a memo to employees. The company has seen “the value of bringing people together in the same location,” the statement said, adding that Exxon Mobil’s global office network “was established decades ago under very different circumstances.”
Bringing teams together will align “our global footprint with our operating model,” the statement said. The company reported 61,000 employees in its latest annual report.
Exxon Mobil’s workforce cuts and consolidation are part of a multiyear push to boost efficiency. Similar moves across the industry reflect how oil companies are adjusting to lower prices and focusing on maintaining profitability in a volatile energy market.
A Bloomberg article said that Woods in his memo said the company was making “tough decisions” as part of a yearslong effort to boost efficiency. Woods has been pushing those changes for about six years, Bloomberg said.
Canada’s Imperial Oil (IMO), which is 70% owned by Exxon Mobil, announced yesterday it was laying off 20% of its workforce to improve its performance “by centralizing additional corporate and technical activities in global business and technology centers, realizing substantial efficiency and effectiveness benefits from scale, integration and technology.”
Exxon Mobil shares are down more than 1% in recent trading and up about 5% year-to-date. Read Investopedia’s full daily markets coverage here.
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