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Exxon Layoffs September 2025: Major Global Restructuring – 2,000 Job Cuts
ExxonMobil announced its most significant workforce reduction in recent years, with plans to eliminate approximately 2,000 jobs globally as part of a comprehensive restructuring plan. This represents 3% to 4% of the company’s total global workforce of 61,000 employees.
CEO Statement and Company Justification
CEO Darren Woods communicated the decision through an internal memo to employees on Tuesday, September 30, 2025. Woods acknowledged the company was making “tough decisions” as part of a sustained effort to improve competitiveness. He stated:
“The changes we’ve announced today will further strengthen our advantages and grow the gap with our competition, helping to keep us in the lead for decades to come”.
The company provided official justification, stating: “Our global office network was established decades ago under very different circumstances. We’ve seen the value of bringing people together in the same location… we are aligning our global footprint with our operating model and bringing our teams together”
Geographic Distribution of Cuts
The September 2025 layoffs are strategically distributed across key regions:
- Europe and Norway: Approximately 1,200 positions to be cut by the end of 2027, including around 600 redundancies
- Canada: Significant cuts through Imperial Oil (see detailed section below)
- No planned cuts in the United States according to company statements
European Restructuring Details
ExxonMobil’s European operations face particularly substantial changes. Philippe Ducom, ExxonMobil Europe President, stated: “We’re proud of our 135-year history in Europe. The European market is important to us, and we will continue to have a meaningful presence here. The business and regulatory environment in Europe is challenging and this transformation will help us compete into the future”.
The company specifically cited regulatory challenges, noting that “Regulations in the EU are more burdensome than in other parts of the world and drive up costs, making it more difficult to compete for capital investments”
Specific European Changes:
- Belgium: Building a new purpose-built office at the Antwerp refinery to house Brussels-based employees and a new European Technology Centre
- Multiple office closures across smaller EU locations
- Consolidation of employees at or closer to manufacturing sites in Germany and Italy
Imperial Oil Layoffs: September 2025
Imperial Oil, which is nearly 70% owned by ExxonMobil, announced on September 29, 2025, that it would cut 20% of its workforce by the end of 2027. This represents approximately 1,000 positions from a total workforce of 5,100 employees.
Management Statements
John Whelan, Imperial Oil Chairman and CEO, stated: “This restructuring plan leverages the swiftly evolving technological landscape and the expansion of global capability centres, thereby advancing our long-term strategy to maximize the value of our existing assets. We recognize the considerable impact this restructuring will have on our employees and their families, and we are deeply committed to supporting our employees through this transition”.
Financial Impact and Rationale
Imperial Oil expects the restructuring to generate $150 million in annual savings by 2028, while incurring a one-time restructuring cost of approximately $330 million in the third quarter of 2025.
Political Response
The announcement drew significant political attention:
Alberta Premier Danielle Smith called the layoffs “very disappointing” and blamed federal government policies for creating industry uncertainty.
Federal Energy Minister Tim Hodgson expressed disappointment, stating: “These are skilled, dedicated people who have greatly contributed to Alberta’s energy sector and Canada’s economy, and my thoughts are with them and their families as they receive this difficult news”.
2024 Layoffs: Pioneer Natural Resources Acquisition Impact
November 2024: Post-Merger Cuts
Following ExxonMobil’s $60 billion acquisition of Pioneer Natural Resources, the company announced plans to cut nearly 400 jobs in Texas. The layoffs were scheduled to occur between December 31, 2024, and May 2026.
Geographic Distribution of 2024 Cuts
The November 2024 layoffs affected 397 employees across five Texas locations:
- 777 Hidden Ridge, Irving: 376 employees
- 2011 N Crescent, Midland: 3 employees
- 1921 US Highway 67, Big Lake: 3 employees
- 4815 E. Highway 80, Midland: 6 employees
- 3617 N Big Spring St., Midland: 9 employees
Company’s Employment Strategy Statement
ExxonMobil emphasized its retention efforts, stating: “Our employment strategy remains unchanged. The success of this merger is largely contingent on retaining the skilled workforce from Pioneer, and over 1,900 Pioneer employees were extended job offers as part of this merger”.
Earlier 2024 Cuts: August
In August 2024, ExxonMobil issued layoff notices to 59 employees following the Pioneer acquisition. This included:
- 39 employees from Las Colinas (Irving, Texas)
- 18 employees from Midland (Permian Basin)
- 2 employees from Concho Valley, West Texas
The company clarified that affected employees had either been offered transition roles or declined job offers from ExxonMobil.
Industry Context and Strategic Rationale
Broader Industry Trends
ExxonMobil’s layoffs are part of a larger industry consolidation trend. Other major oil companies have announced similar cuts:
- Chevron: Plans to reduce workforce by 15-20%
- ConocoPhillips: Cutting 20-25% of employees
- BP: Eliminating over 5% of workforce
Market Pressures
Several factors are driving the industry-wide job cuts:
- Oil Price Decline: Benchmark Brent crude futures down approximately 10.5% year-to-date
- OPEC+ Supply Increases: Heightened output affecting global prices
- Trade Policy Uncertainty: Persistent demand uncertainty tied to U.S. trade policies
ExxonMobil’s Long-term Efficiency Drive
The company has been pursuing operational efficiency since 2019, when Woods began restructuring what was effectively nine independent companies into a more streamlined operation. Key achievements include:
- $13.5 billion in annual cost savings since 2019
- 30% reduction target in additional savings by the end of the decade
- Workforce reduction: Nearly 20% decrease since 2019, from approximately 76,000 to 61,000 employees
Operational Consolidation Strategy
Woods has systematically consolidated ExxonMobil’s structure from nine functional companies operating independently to three main divisions: production, refining, and low-carbon operations, all sharing services like engineering, IT, and project management.
Revenue and Profitability
Despite the layoffs, ExxonMobil has maintained strong financial performance:
- Imperial Oil Q2 2025: $11.23 billion in total revenue, down from $13.38 billion in Q2 2024
- The company continues to generate substantial profits from its diversified energy portfolio
Cost Reduction Targets
ExxonMobil announced in February 2025 plans to cut annual costs by $9 billion by 2023 compared to 2019 levels, with the restructuring being a key component of this strategy.
Future Outlook and Implications
Timeline for Implementation
The current round of layoffs will be implemented over several years:
- European cuts: To be completed by end of 2027
- Imperial Oil reductions: 20% workforce reduction by end of 2027
- Texas Pioneer-related cuts: Extended through May 2026
Technology and Efficiency Focus
The company is leveraging technology advancement as a justification for workforce reduction, with Imperial Oil specifically citing the need to “use technology to maximize the value of its existing assets”.
Regulatory Challenges
ExxonMobil has been particularly vocal about European regulatory challenges, with the company stating that “regulatory complexity and excessive red tape require companies to dedicate even more resources to compliance”. This has influenced the decision to consolidate European operations significantly.
The comprehensive nature of these layoffs reflects ExxonMobil’s strategic pivot toward operational efficiency, technological integration, and geographic consolidation as the global energy industry navigates changing market dynamics and regulatory environments.
