Exxon Mobil said on Tuesday it will cut about 2,000 jobs worldwide, equal to roughly 3% to 4% of its global workforce, as part of a broad restructuring effort aimed at streamlining operations.

The move follows the oil giant’s $60 billion acquisition of Pioneer Natural Resources last year, which significantly expanded its U.S. shale operations and prompted organizational changes.

The company said the layoffs will be carried out over the coming months and will mainly affect office staff as smaller locations are consolidated into larger regional hubs.

Exxon also confirmed that nearly 400 previously announced cuts in Texas will go ahead as part of the wider program. Management described the plan as essential to aligning its global workforce with its long-term operating model.

Chief Executive Darren Woods told employees in a memo that while the decisions are “tough,” they are necessary to ensure Exxon remains competitive and can continue to deliver value to shareholders.

He added that the company will focus on building scale and efficiency across its expanded portfolio, particularly in the Permian Basin, which is now central to Exxon’s growth strategy.

The restructuring comes as oil majors globally are tightening costs amid volatile crude prices, inflationary pressures, and a shifting energy landscape.

Rivals including Chevron and BP have also recently announced workforce cuts and structural changes as they balance fossil fuel operations with investments in cleaner energy.

Exxon said its latest measures are designed to support both current energy demand and its long-term low-carbon initiatives.

Industry analysts note the job cuts reflect broader trends in the sector, where automation, consolidation, and efficiency drives are reshaping traditional roles.

While Exxon remains one of the largest and most profitable oil companies, the adjustments highlight the challenges even the biggest players face in navigating energy transitions while maintaining shareholder returns.

Source: Reuters.