By Olakunle Oke
Over 2,000 individuals will lose their jobs as ExxonMobil Corporation embarks on a major restructuring effort designed to consolidate operations and boost competitiveness.
The reduction, representing 3 to 4 percent of the oil major’s global workforce, was described by Chief Executive Officer Darren Woods as a “tough decision” intended to strengthen the company’s advantages and widen its lead over rivals.
“These changes will further strengthen our advantages and grow the gap with our competition, helping to keep us in the lead for decades to come,” Woods wrote.
While the cuts coincide with a wave of layoffs across the oil and gas sector with Chevron, ConocoPhillips, and BP all making similar moves, Exxon stated its decision is less tied to oil price volatility and more aligned with an internal restructuring Woods initiated in 2019.
This multi-year plan has focused on simplifying Exxon’s corporate footprint, which became increasingly complex following the 1999 merger with Mobil.
Since becoming CEO in 2017, Woods has streamlined nine semi-independent business units into three core divisions: production, refining, and low-carbon. These are now supported by centralized services like IT, engineering, and project management.
The company reported that the restructuring has already delivered $13.5 billion in annual cost savings since 2019, an amount it claims is more than any other international oil major. Exxon is now targeting a further 30 percent increase in savings by the end of the decade.
As part of the shake-up, Exxon is consolidating smaller offices into regional hubs that align with its growth priorities. These include offshore oil projects in Guyana, LNG developments along the U.S. Gulf Coast, and global trading.
Employees in Brussels and Leatherhead, outside London, are being relocated to the company’s London hub, where trading operations are concentrated.
These changes underscore the scale of transformation underway in the global energy industry as companies grapple with cost pressures and long-term shifts.
For Exxon, the restructuring represents its most significant overhaul since its creation more than two decades ago, with Woods insisting it will leave the company leaner, more integrated, and better positioned for the future.