ExxonMobil says relocation, restructuring will 'better serve our customers' and save billions

ExxonMobil is relocating its corporate headquarters from Irving, Tex., to its campus outside Houston as part of consolidation and restructuring plans predicted to save the corporation $6 billion in structural cost savings by 2023.

ExxonMobil made the announcement Jan. 31 on its corporate website. The move is expected to be concluded by mid-2023, according to the statement. The reorganization of its business lines will be finished by this spring, according to the statement.

“Our transformed business structure enables us to more fully leverage the corporation’s scale, integration, technology advantages, and the skills and capabilities of our talented workforce, to better serve our customers,” Darren Woods, chairman and chief executive officer, said in the announcement.

ExxonMobil stated the corporation will be reorganized by April 1 into three business lines: ExxonMobil Upstream Co., which will produce oil and gas; ExxonMobil Product Solutions, producer of fuel and chemicals; and ExxonMobil Low Carbon Solutions, which will focus on solutions to emissions. ExxonMobil states the three lines will be under the umbrella of ExxonMobil Technology and Engineering,  

ExxonMobil describes the move and restructuring as "a further evolution of the company’s business model and part of its strategy to build globally competitive businesses that lead industry in earnings and cash flow growth, operating performance and the energy transition."

“Aligning our businesses along market-focused value chains and centralizing service delivery, provides the flexibility to ensure our most capable resources are applied to the highest corporate priorities and positions us to deliver greater shareholder returns,” Woods said.

ExxonMobil’s new headquarters are approximately 250 miles from Irving. The 250 employees working in Irving include Woods and other members of executive management, FOX Business reports.  A spokesperson for ExxonMobil told Fox Business that the relocation  is not expected to lead to people leaving their jobs and that relocation packages are being offered to eligible employees.

“We greatly value our long history in Irving and appreciate the strong ties we have developed in the North Texas community,” Woods said in the announcement, 

 “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."