The oil sector has been hit with significant job losses, with Exxon Mobil layoffs now taking center stage. Exxon is set to cut 2,000 jobs across its global operations, with reports indicating that the changes will be focused in Canada and the European Union. The company acknowledged that 1,200 positions will be cut in Norway and the EU by the end of 2027. The timeline for the cuts suggests that Exxon’s restructuring layoffs will involve a slow but certain overhaul of its workforce over the next two years.
For now, Exxon’s global cuts are unlikely to hit the US, however, the option is not entirely off the table for the coming years. The rising global oil and energy sector job cuts are indicative of considerable change in both demand and pricing within the industry, with regulatory changes occurring across borders also contributing to the cuts. While employees in the tech sector remain apprehensive about AI-powered job cuts, the oil sector’s job losses are a reminder that change can arrive in many forms.
he Exxon layoffs will affect 2,000 jobs across its global operations, with the organization also consolidating its operations into fewer locations. (Image: Freepik)
Exxon Layoffs Announced: 2,000 Jobs To Be Affected by Reorganization Efforts
After businesses like Chevron, ConocoPhillips, and BP, Exxon is the latest to announce restructuring layoffs that may help realign the business with its goals while also managing its labor needs. Exxon Mobil is set to cut 2,000 jobs globally, with a clear vision to consolidate some of its operations to the same locations to aid in easier collaboration.
The company is believed to employ 61,000 workers globally, at least according to reports at the end of 2024, which means that the layoffs will affect a comparatively small section of its workforce. Exxon’s long-term restructuring plan is expected to affect 3% to 4% of the company’s manpower, with operations in Canada and the EU bearing the brunt of most of the changes.
The company is a majority owner of Canadian firm Imperial Oil, where a recent announcement revealed that 20% of the workforce is likely to see cuts by the end of 2027. According to Reuters, this announcement accounts for about half of the cuts that the company is currently exploring.
Exxon’s Global Cuts Are Accompanied by Unification Efforts
The Exxon layoffs are only part of the company’s strategy to reorganize its labor force amidst plans to lower output as a result of lowered profits. The organization is also hoping to unify its workforce to some degree by having its employees work from the same locations to build collaboration.
“Our global office network was established decades ago under very different circumstances. To support the collaboration so critical to our success, we are aligning our global footprint with our operating model and bringing our teams together,” a spokesperson confirmed in an email.
The evidence of this shift is apparent in the company’s operations in Europe, where Exxon’s global cuts will be followed by the establishment of a new office at its Antwerp refinery in Belgium. This will allow the organization to close some of its smaller operations across the EU and center its work at one location where its employees can assimilate.
Exxon’s Attempt to Consolidate Workforces Reminds Us of Why RTO Policies are Ramping Up
Exxon’s restructuring layoffs are undoubtedly set to be difficult on the employees who are asked to leave, as well as those who stay on. The decision to close smaller offices and establish regional hubs for consolidated operations is not an unusual idea, and echoes a similar sentiment we’ve seen across workplaces: employees work better together.
The rise of RTO policies has been criticized as a way to take back flexibility and force employees to quit rather than announcing additional layoffs. However, there has also been a more concentrated effort to push employees back into working together as a unit rather than scattered across the globe. Not only does this help with the easier management of employees spread across fewer locations, but it also adds to the idea that employees work better when they collaborate more.
The Exxon restructuring layoffs and centralization efforts are also being motivated by new EU regulations that require businesses to fix environmental issues within their supply chains. In light of the shifting regulatory landscape, Exxon’s mention of its global footprint makes more sense. In the coming months, we should gain a better understanding of the mounting energy layoffs in 2025 so we can evaluate how the workforce is impacted by the changes over time.
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