Exxon Mobil followed its competitors in announcing layoffs. What is the reason for this?

Exxon Mobil plans to cut about 2,000 jobs, a spokesman for the oil giant told Barron's in a commentary. This is 3-4% of the company's total headcount.

"Our global office network was formed decades ago under very different circumstances," Exxon said in a statement. - To enable the collaboration critical to our success, we are adapting our global presence to the current operating model and bringing teams together."

Bloomberg was the first to report on the cuts at Exxon Mobil, citing a letter from Exxon CEO Darren Woods to employees. The company is forced to make "difficult decisions" to improve competitiveness, the letter said. The staff cuts should "strengthen Exxon's advantages and widen the gap with competitors," Woods wrote.

Exxon has been undergoing a major internal reorganization since 2019 to simplify the sprawling global structure that emerged from its merger with Mobil 20 years ago. In that time, Exxon has cut annual expenses by $13.5 billion - more than all other international oil companies combined - and plans to increase that figure by 30% by the end of the decade, Bloomberg notes.

Exxon has become the next oil giant to announce cost cuts amid falling oil prices as OPEC+ continues to saturate the market with oversupply in an attempt to regain market share, Barron's writes. While at the beginning of the year the price per barrel of Brent exceeded $80, after OPEC+ began raising production in the spring, quotations have consolidated in the $60-70 range.

France's TotalEnergies said Monday it plans to save $7.5 billion by the end of the decade. Canadian refiner Imperial Oil, majority owned by Exxon, announced plans to reduce its workforce by 20% by the end of 2027 to save $150 million a year.

American Chevron cut from 15% to 20% of its staff back in February. BP announced at the beginning of the year that it would cut about 5% of its staff positions.

This article was AI-translated and verified by a human editor