Exxon Mobil To Cut 400 Texas Jobs In Stages Through 2026

Exxon Mobil Corp XOM is set to lay off nearly 400 employees in Texas, following its acquisition of Pioneer Natural Resources earlier this year.

The downsizing plan includes 376 job cuts in Irving, Texas, and an additional 18 in Midland, according to Reuters, which cited information from the Texas Workforce Commission.

Exxon had extended job offers to almost 1,900 Pioneer employees as part of the merger agreement.

Also Read: Lenovo Q2 Earnings: Cloud Momentum, AI PCs, And Smartphone Growth Drive Revenue Beat

The company plans to lay off 110 employees by the end of 2024 and schedule another 178 layoffs for 2025. The remaining job cuts, affecting about 100 workers, are expected to occur in 2026.

In line with its focus on shale expansion, Exxon is reportedly preparing to divest conventional oil assets in the Permian Basin valued at approximately $1 billion. The sale would involve mature wells in the Central Basin that provide stable but modest oil output.

For its third quarter, Exxon reported total revenues of $90.02 billion, falling short of the market consensus of $93.94 billion. Production rose by 5%, reaching 4,582 thousand oil-equivalent barrels per day, boosted by increased output from Pioneer's assets.

Adjusted net profit dropped to $8.61 billion from $9.24 billion in the previous quarter. Exxon achieved structural cost savings of $11.3 billion compared to 2019 levels and aims to reach $15 billion in cumulative savings by the end of 2027.

Exxon Mobil shares have gained 18% year-to-date. However, Viking Fund Management recently reduced its stake in the company.

Price Action: Exxon Mobil stock is up 0.12% at $120.71 at last check on Friday.

Also Read: