Bloomberg News reports that Exxon Mobil will cut 2,000 jobs as part of a restructuring.
Bloomberg News reported that Exxon Mobil, a U.S. energy giant, will lay off 2,000 employees globally as part a long-term reorganization plan. This is the latest in a series of job losses this year within the oil and gas sector.
The report cited a memo sent by CEO Darren Woods, which stated that the reductions represented between 3% and 4% of global staff.
After purchasing Pioneer Natural Resources for $60 billion in 2024, the shale gas producer has been streamlining operations. The company announced in November of last year that it would be cutting nearly 400 jobs in Texas.
Exxon Mobil stated in an email on Tuesday that "we've seen the benefits of bringing people in one location... We are aligning our worldwide footprint with our operational model and bringing together our teams."
Exxon, a major shareholder in Imperial Oil, a Canadian shale oil producer, announced Monday that it would be cutting 20% of its staff and closing the Calgary business.
As the energy sector struggles to cope with lower crude oil prices, and rapid consolidation, global companies have announced tens of thousands of job losses this year.
Chevron will lay off between 15% and 20% of their global workforce. BP said that it would reduce more than 5%, while ConocoPhillips announced that it would be cutting 20% to 25%.
Texas labor market data showed that oil and gas jobs in the United States fell by 4,700 during the first half of this year.
According to a Federal Reserve Bank of Dallas survey, the activity levels in key U.S. producers Texas, Louisiana, and New Mexico have declined in the third quarter. Several industry executives reported significant delays in making investment decisions due to the price volatility.
Benchmark Brent crude prices are down 10.5% so far this year, mainly due to increased OPEC+ production and the persistent uncertainty about demand caused by U.S. Trade Policy.
Exxon will employ 61,000 people worldwide by the year 2024, according a filing with regulatory authorities. Reporting by Vallari Srivastava, Bengaluru. Editing by Mrigank Dahniwala and Sriraj Kalluvila
(source: Reuters)
