Supermajors Slim Down to Protect Shareholder Payouts

Core Insights - The world's largest oil and gas companies are increasing layoffs in 2024 to achieve cost reductions and improve efficiency due to industry consolidation, declining oil prices, and technological advancements [1][4]. Industry Overview - Following the peak oil prices of $100 per barrel in 2022, the industry experienced significant profits, but earnings have normalized and decreased in 2024 and 2025, leading firms to pursue additional cost savings as oil prices hover in the $60s per barrel [2]. - The substantial profits of 2022 triggered a wave of consolidation, particularly in the U.S., with major companies like ExxonMobil and Chevron engaging in multi-billion-dollar acquisitions to enhance their presence in shale and exploration sectors [3]. Layoff Trends - The ongoing mergers and lower oil prices are resulting in widespread layoffs, with a reduction in office-based employees and contractors as companies aim to save billions and streamline operations [4]. - ExxonMobil announced a reduction of 2,000 jobs globally, with significant cuts in its Canadian operations, and has already eliminated around 400 jobs in Texas following its acquisition of Pioneer Natural Resources [6]. Technological Impact - Advancements in technology, including robotics and AI, are contributing to job eliminations, a trend expected to persist in the future [5]. Company-Specific Actions - Imperial Oil, a subsidiary of ExxonMobil, plans to reduce its workforce by approximately 20% by the end of 2027 as part of a restructuring effort aimed at enhancing operational focus and collaboration [7]. - ExxonMobil is realigning its global operations to better support collaboration and efficiency, reflecting a shift in its operational model [8].