Exxon is announcing cost-cutting restructure plans to move headquarters

Exxon is announcing cost-cutting restructure plans to move headquarters

February 2, 2022: On Monday, Exxon Mobil disclosed a sweeping restructuring of its global operations that will combine its refining and chemicals businesses into one and put its energy transition business on a similar footing as its other operations.

The broad restructuring marks its recent cost-cutting effort after activist investors seeking to boost returns and address tn8nhe energy transition won three seats last spring on its board.

Effective April 1, Exxon will be organized with three business lines: its upstream oil and gas production unit, the combined downstream refining and chemicals business, and its recent energy transition business, Low Carbon Solutions, the company said in a filing.

“Aligning our businesses along market-focused value chains and centralizing service delivery is providing the flexibility to ensure our most capable resources are applied to the high corporate priorities and positions us to deliver huge shareholder returns,” Chief Executive Officer Darren Woods said.

The restructuring will not impact fourth-quarter financial results, which the top U.S. producer reports on Tuesday. Past cost-cutting moves and higher oil prices are expected delivering a quarterly per-share profit of $1.93, up from an adjusted profit of three cents a share a year ago.

The restructuring will combine its technology operations, few of which had been assigned under the individual units. Exxon said that the new, single technology organization would be ExxonMobil Technology and Engineering.

Exxon also will relocate its corporate headquarters from Irving, Texas, to its campus north of Houston. That move is expected to be completed in mid-2023.

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Exxon is announcing cost-cutting restructure plans to move headquarters