ExxonMobil has announced it will eliminate around 2,000 jobs worldwide, representing approximately 3 per cent to 4 per cent of its global workforce, as part of an ongoing long-term restructuring plan aimed at streamlining operations and cutting billions of dollars in annual costs.
The energy giant confirmed the job cuts in a memo to employees, emphasising that the reductions will mainly affect Canada and Europe, while no layoffs are currently planned in the United States.
The company said the restructuring reflects a shift toward consolidating smaller offices into regional hubs to improve operational efficiency and bring teams closer together.
ExxonMobil described its existing global office network as one established decades ago under very different circumstances and cited the need to align its global footprint with its current operating model.
A new European Technology Centre will be established at the company’s Antwerp refinery, housing most Brussels-based employees, while several smaller offices across the European Union will be closed.
ExxonMobil’s workforce numbered approximately 61,000 staff worldwide at the end of 2024.
The announced reductions come amid a broader trend of workforce thinning and consolidation across the oil and gas sector, which has faced subdued crude prices and shifting market dynamics in recent years.
Since 2014, ExxonMobil has reduced its headcount by nearly 20 per cent as part of a wider $13.5 billion effort to cut structural costs.
Other major oil companies, including Chevron, BP, and ConocoPhillips, have also announced significant layoffs this year.
The job cuts follow closely on the heels of a 20 per cent workforce reduction announced by Canadian shale producer Imperial Oil, in which ExxonMobil holds a major stake.
Approximately half the positions being eliminated as part of ExxonMobil’s global plan relate to Imperial Oil’s cuts. Additionally, around 1,200 roles will be cut in Norway and European Union countries by the end of 2027 as part of the transition.
ExxonMobil CEO Darren Woods has long advocated for operational efficiency improvements through consolidation.
In 2020, Woods acknowledged that such restructuring would entail difficult decisions affecting employees but underscored the company’s commitment to supporting those impacted.
Market pressures have mounted due to a slump in global crude prices this year, with West Texas crude trading below $63 per barrel and other benchmarks similarly down.
The restructuring initiative aims not only to reduce costs but to drive innovation by improving collaboration in unified workplaces as the company adapts to today’s challenging energy landscape.
ExxonMobil’s restructuring highlights a broader industry pivot toward leaner, more adaptable operations amid an environment of price volatility and evolving regulatory pressures, especially in Europe, where new corporate sustainability laws pose additional compliance challenges.
Despite the cuts, ExxonMobil affirmed it will maintain a meaningful presence in key markets while enhancing competitiveness for the future.
This latest workforce reduction marks a significant step in ExxonMobil’s multi-year transformation as it consolidates resources globally to sustain profitability and operational agility in a complex and rapidly shifting energy sector environment.
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