ExxonMobil Slashes Jobs, Restructures Amidst Oil Price Drop Predictions
ExxonMobil and its subsidiaries are streamlining operations, with job cuts and restructuring plans. Analysts predict a drop in oil prices by 2026.
ExxonMobil's CEO, Darren Woods, has hinted at 'difficult decisions' to boost competitiveness. By the end of 2027, Imperial Oil Ltd., nearly 70% owned by Exxon, plans to reduce its workforce by about 20%. This will affect around 1,000 employees, mostly in Calgary, with remaining positions relocating to the Strathcona refinery near Edmonton.
Exxon's current job cuts will impact 3-4% of its total workforce. This follows a significant reduction of nearly 20% from 2019 to the end of 2024, when the company had 61,000 employees worldwide. As part of its reorganization, Exxon plans to merge small offices into regional centers.
Other major oil companies are also announcing job cuts. Chevron plans to reduce its workforce by 15-20%, affecting around 9,000 jobs. BP is set to cut at least 15% of its staff, around 6,200 employees. ConocoPhillips has also announced job cuts, though details are yet to be revealed.
Analytical company Wood Mackenzie predicts the price of oil to drop to $60 by the beginning of 2026, which may be influencing these cost-cutting measures. These job cuts and restructuring plans aim to increase competitiveness and adapt to changing market conditions in the oil industry.
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