Exxon Mobil memo reveals plans for 2,000 job cuts

(Sharecast News) - Exxon Mobil has announced plans to cut 2,000 jobs as part of a global efficiency drive, according to reports on Tuesday. An internal memo to employees by chief executive Darren Woods, seen by Bloomberg, revealed that the American oil and gas giant is planning to consolidate smaller offices into regional hubs.

The layoffs - which account for around 3-4% of the worldwide headcount - follow similar moves by rivals BP, ConocoPhillips and Chevron in response to a collapse in oil prices so far this year.

Brent crude was down a further 1.3% at $66.21 a barrel on Tuesday afternoon, having dropped from January's $80 level and the $100 mark reached in early 2022.

However, Exxon's move is thought to be a part of the company's ongoing simplification programme that's been in place since 2019.

Woods said in the memo that the company was having to make "tough decisions".

"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," he said.

Shares were down 1.4% at $112.56 by 1030 ET.