Exxon Mobil is set to lay off 2,000 workers globally as part of a long-term restructuring plan. The popular energy major recently said that the restructuring plan will affect 3% to 4% of the company’s global workforce.
Speaking via an emailed statement, a company spokesperson disclosed that there are no planned job cuts in the U.S.
Layoffs announced at Canadian oil producer Imperial Oil(IMO.TO), of which Exxon is a majority owner, account for about half of the broader cuts.
As the world experiences a slump in global crude oil prices amid the OPEC+ group of oil producers increasing output, energy companies have been announcing thousands of job cuts to reduce costs and cope with reduced profits.
Houston-based Exxon has since revealed that it plans to improve efficiency by having its workers operate from one location.
“Our global office network was established decades ago under very different circumstances. To support the collaboration so critical to our success, we are aligning our global footprint with our operating model and bringing our teams together,” the statement read.
Oil producers across the globe are increasingly consolidating office locations to work more efficiently and save funds. Chevron, the 2nd-largest U.S. oil producer after Exxon, said months ago that it would lay off up to 20% of its global workforce and expand the use of global centres, including an engineering hub in Bengaluru.
In September, ConocoPhillips also shared its plans to cut 20% to 25% of employees asap.
U.S. oil and gas production jobs dropped by 4,700 in the first six months of this year, Texas labour market statistics showed.
Activity levels in the key American producing states of Texas, Louisiana and New Mexico reduced slightly in the third quarter, with various industry executives reporting major delays in investment decisions in response to price fluctuations, as per a survey by the Federal Reserve Bank of Dallas.
Folami David is a dynamic journalist who views the world through an analytical lens, translating complex narratives across multiple industries into compelling stories. With an insatiable appetite for information and a keen eye for emerging trends, Folami specializes in uncovering the interconnections between technology, business, culture, and society.
