Exxon Mobil does not anticipate cutting any jobs as a result of the restructuring, company spokesperson Erin McGrath told Reuters. (Source: Image of Exxon Mobil headquarters in Irving, Texas, by askarim / Shutterstock.com)
Exxon Mobil Corp. is relocating its corporate headquarters from Irving, Texas, to its campus north of Houston, the oil major unveiled on Jan. 31 alongside a restructuring of its global operations.
“We greatly value our long history in Irving and appreciate the strong ties we have developed in the North Texas community,” Darren Woods, chairman and CEO of Exxon Mobil, commented in a company release.
Effective April 1, Exxon Mobil will be organized along three business lines: ExxonMobil Upstream Co., ExxonMobil Product Solutions, which combines its downstream refining and chemicals business, and its latest energy transition business, called Exxon Mobil Low Carbon Solutions.
Exxon Mobil is on track to exceed $6 billion in structural cost savings by 2023 compared to 2019, according to its company release, a major focus for Exxon after suffering a historic, $22.4 billion loss in 2020. The restructuring is also the company’s latest effort after activist investors seeking to boost returns and address the energy transition won three seats on its board last year.
“Closer collaboration and the new streamlined business model will enable the company to grow shareholder value and position Exxon Mobil for success through the energy transition,” Woods added in the release.
The restructuring will not impact fourth-quarter financial results, which Exxon Mobil is set to report on Feb. 1. The company also does not anticipate cutting any jobs as a result of the restructuring, Exxon Mobil spokesperson Erin McGrath told Reuters.
Exxon Senior Vice President Jack P. Williams also told Reuters the company first considered the changes around 2017.
“It’s an evolution,” Williams said in the Reuters report. “We have been working on it now for a while.”
ExxonMobil Product Solutions will be the market leader in sales of polyethylene and other high-value chemical products and hold the No. 2 market position in aromatics, lubricants and fuel additives. Karen McKee, formerly president of ExxonMobil Chemical Co., has been appointed to lead ExxonMobil Product Solutions.
ExxonMobil Technology and Engineering will integrate technology activities, improving value delivery through centralized management of technical capabilities tightly linked to business priorities. Linda DuCharme, formerly president of ExxonMobil Upstream Integrated Solutions and ExxonMobil Upstream Business Development, has been appointed to lead ExxonMobil Technology and Engineering Co.
The restructuring will also consolidate the upstream into a single organization, ExxonMobil Upstream Co., which will be led by Liam Mallon, formerly president of ExxonMobil Upstream Oil and Gas Co.
The relocation of Exxon Mobil’s headquarters, to be completed mid-year 2023, is expected to enable closer teamwork between the three business lines to accelerate and increase value delivery through company-wide approaches.
Editor’s note: Reuters contributed to this article.
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