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Exxon Mobil achieves cost-cutting target ahead of schedule, eyes further reductions

EditorHari Govind
Published 27/10/2023, 17:22
© Reuters
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Guided by the strategic leadership of CFO Kathy Mikells, Exxon Mobil Corp. (NYSE:XOM), the Texas-based oil giant, has achieved its cost-cutting target three months ahead of schedule and is now considering further "structural" reductions. This accomplishment comes as part of a four-year transformation plan that has seen the company execute significant changes in its operations.

The company's restructuring efforts have led to a reduction of its global workforce by 17%, equivalent to 13,000 jobs. This downsizing, along with business divestment and corporate relocation initiatives, has resulted in a $9 billion cut in annual expenses. This figure offsets more than half of Exxon's dividend outlays.

Despite operating with fewer staff than BP (NYSE:BP) Plc as of the end of 2022, Exxon's market value remains significantly higher. In fact, Exxon's market value is nearly four times that of BP Plc.

Exxon Mobil Corp. is not stopping at these achievements. The company has announced plans to unveil further cost-saving initiatives in their corporate announcement set for December. These initiatives will build upon the structural changes already implemented and aim to further streamline the company's operations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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