Oil giant Exxon Mobil announces 2,000 job cuts in global restructuring

Exxon Mobil has announced plans to cut 2,000 jobs worldwide as part of a multi-year restructuring programme aimed at consolidating operations and improving efficiency. The reductions, which are roughly 3% to 4% of its workforce, will fall largely in Canada and Europe, with no direct impact on U.S. operations or the company’s footprint in Australia and New Zealand.

According to Exxon, about 1,200 roles will be phased out across Norway and the European Union by 2027, while around half of the global cuts will come from Imperial Oil, Exxon’s Canadian subsidiary. The company says the decision reflects a need to modernise its office footprint and foster greater collaboration by concentrating employees in fewer, larger hubs.

The timing of this announcement shows just how shaky the oil and gas sector is right now. Benchmark Brent crude has dropped over 10% this year, largely because OPEC+ is pumping more oil and global demand remains uncertain. Exxon isn't alone in this; competitors like Chevron and ConocoPhillips have already announced major layoffs as they, too, scramble to cut costs and become more efficient.

While the immediate headcount won't change in Australia and New Zealand, industry analysts are cautioning that these structural changes signal a much deeper problem. It raises a huge question for these global energy giants: how can they possibly juggle cost-cutting, demands for sustainability, and unstable oil prices while still keeping up their commitment to invest in local ANZ markets?

Exxon's leadership is already vocal about its concerns regarding strict regulations, with CEO Darren Woods recently slamming new EU supply chain sustainability laws as a potential roadblock for business. Even though ANZ markets are outside this immediate round of cuts, industry observers are paying close attention, noting that these shifts in Exxon's global strategy will inevitably filter down and impact future investment, workforce planning, and technology decisions across the Australian and New Zealand energy sector.