Shares in oil giant Exxon Mobil (XOM) fell today after it slashed its workforce as part of a long-term restructuring plan.
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Efficiency Move
According to a Reuters report, Exxon is laying off 2,000 workers around the globe representing about 3% to 4% of its overall workforce. Citing a memo from chief executive Darren Woods to employees, the move is being made as part of an ongoing efficiency drive.
The shale producer has been streamlining its operations after closing its $60 billion purchase of Pioneer Natural Resources in 2024. In November last year, the company revealed in a filing that it would cut nearly 400 jobs in Texas.
“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,” Exxon Mobil said.
Yesterday, September 29, Canadian shale producer Imperial Oil, in which Exxon is a major shareholder, announced plans to cut 20% of its workforce and shutter business in Calgary.
Global energy companies have announced thousands of job cuts this year, as the sector navigates weaker crude oil prices, geopolitical events making supply and demand more volatile and a rapid consolidation in the sector. This is all despite positive fundamentals in the industry particularly the support of President Trump and his ‘drill, baby, drill’ mantra.
Not So Slick
Chevron (CVX) plans to lay off 15% to 20% of its global workforce, while BP (BP) has said it would cut more than 5% of its jobs and ConocoPhillips (COP) has announced it would cut 20% to 25% of its jobs.
According to Texas labor market statistics, U.S. oil and gas production jobs fell by 4,700 in the first six months of this year.
Activity levels in the key U.S. producing states of Texas, Louisiana and New Mexico also declined slightly in the third quarter, with several industry executives reporting significant delays in investment decisions in response to price volatility, according to a survey by the Federal Reserve Bank of Dallas.
Despite the uncertainty, the Exxon share price is up nearly 10% since the start of 2025.
In its Q2 results it also revealed that it had achieved the highest second quarter production since the merger of Exxon and Mobil over 25 years ago. More than half of the oil and natural gas production, it said, comes from high-return, advantaged assets, expected to increase to over 60% by the end of the decade.
Is XOM a Good Stock to Buy Now?
On TipRanks, XOM has a Moderate Buy consensus based on 13 Buy and 7 Hold ratings. Its highest price target is $145. XOM stock’s consensus price target is $126.74, implying a 10.96% upside.
