Exxon toys with the idea of moving headquarters to Houston

• The decision is a part of a reorganisation exercise to combine its chemical and refining divisions to reduce costs

• The new headquarters will be in Exxon’s biggest U.S. office campus in Spring

Exxon Mobil Corp (NYSE: XOM) announced that it would move its corporate headquarters from Irving Texas to the Houston area near Dallas, as a part of a reorganization exercise.

The company announced that the new exercise will involve combining its chemical and refining divisions to reduce costs. 

Three business lines will be created including an oil-and-gas production unit, a chemicals-and-refining unit, and a low-carbon unit, effective from April 1, and the project is likely to be completed by 2023.

“Closer collaboration and the new streamlined business model will enable the company to grow shareholder value and position ExxonMobil for success through the energy transition,” CEO Darren Woods said in the statement.

Also read: Engine No.1 scores a hat-trick with a third board seat at ExxonMobil

The new headquarters will be in Exxon’s biggest U.S. office campus in Spring, just north of Houston, which was opened under former CEO Rex Tillerson in 2014. 

Job cuts

In October 2021, Exxon announced its plans to close two Houston-area office towers after a wave of unprecedented job cuts and employee departures since 2020.

Exxon announced its first major job cuts in decades in 2020, with 1,900 U.S. employees cut as part of a global effort to shrink headcount by 15%. The company further reduced its workforce after two performance review cycles in 2021, reported Bloomberg.

Exxon spokesman Casey Norton said there wouldn’t be any layoffs as part of the latest reorganization exercise, reported Wall Street Journal.

Also read: Exxon pledges to reduce carbon emissions to zero by 2050

Picture Credits: FT