ExxonMobil, a leading player in the oil industry, is set to eliminate approximately 2,000 positions worldwide as part of a strategic move to consolidate smaller offices into centralized regional hubs, aligning with its long-term operational goals.
This workforce reduction accounts for roughly three to four percent of Exxon’s total global employees and is a continuation of the company’s drive to enhance efficiency, according to a memo from CEO Darren Woods addressed to staff on Tuesday. Meanwhile, Imperial Oil Ltd., based in Calgary and majority-owned (about 70%) by Exxon, revealed plans on Monday to reduce its workforce by 20 percent.
Other major oil corporations such as Chevron Corp., ConocoPhillips, and BP Plc have also announced significant layoffs in recent months, a response to the sharp decline in crude oil prices triggered by increased output from OPEC and allied producers.
Since 2019, Exxon has been undergoing a comprehensive internal overhaul initiated by Woods, aimed at streamlining the company’s extensive global operations-a legacy of the Mobil merger nearly 20 years ago.
Woods emphasized in his memo that the company is making “difficult choices” to build on years of efforts to boost competitiveness. He stated, “The adjustments we are implementing today will enhance our strengths and widen the lead over our competitors, securing our position at the forefront of the industry for years to come.”
Exxon declined to provide further comments beyond the internal communication.
The newly established regional hubs will concentrate on Exxon’s key growth areas, including oil exploration in Guyana, liquefied natural gas projects along the Gulf Coast, and global trading operations. For instance, the company recently announced relocating staff from Brussels and Leatherhead, UK, to central London, where a significant portion of its trading team is based.
When Woods assumed leadership in 2017, Exxon operated through nine semi-autonomous business units, which led to bureaucratic inefficiencies and redundant support functions. The company has since reorganized into three primary divisions-production, refining, and low-carbon energy-all of which now share centralized services such as engineering, IT, and project management.
These structural changes have enabled Exxon to reduce annual expenses by $13.5 billion since 2019, surpassing the cost-cutting achievements of all other international oil majors combined. The company aims to boost these savings by 30 percent by 2030.
While some of the cost reductions have been achieved through asset divestitures and workforce downsizing, Woods highlights that operational improvements have also played a significant role. Enhanced maintenance protocols and the cross-sharing of best practices among business units have contributed to better overall performance.
As of the end of 2024, Exxon’s global headcount stood at 61,000, marking a nearly 20 percent decrease since 2019, according to the company’s annual reports. Imperial Oil employed approximately 5,100 people at the same time.
