Reorganizing the enterprise will doubtless lead to a restricted variety of job cuts over time as some positions grow to be redundant and a few employees are reassigned, in line with folks acquainted with the matter, although it’s unclear what number of jobs will probably be affected. Exxon stated within the memo the consolidation plan is “not about headcount reductions.” 

“That is about bringing widespread teams collectively to raised seize the size of the worldwide company,” Exxon spokesman Casey Norton stated. “The brand new construction will present progress and profession improvement alternatives for our staff, and we’re actively hiring in lots of areas.”

The reshuffling is the most recent transfer in a multiyear effort by Exxon to attempt to save $9 billion in annual prices by the tip of this yr, in contrast with 2019. The corporate stated late final month it’s on observe to chop one other $2 billion this yr on prime of $7 billion in financial savings it has present in initiatives equivalent to placing its refining and chemical compounds companies beneath one roof final yr.  

Exxon isn’t anticipated to announce layoffs linked to its reorganization, in line with the folks acquainted with the matter. Throughout a historic oil-market crash in 2020, induced by the pandemic, Exxon stated it could shed 15% of its whole workforce, together with about 1,900 U.S. jobs. The corporate had 63,000 common staff on the finish of 2021, down from 75,000 on the finish of 2019, earlier than the pandemic, regulatory filings present.

Exxon cashed in on excessive oil and natural-gas costs to succeed in a historic annual revenue of $55.7 billion final yr. Amongst U.S. corporations, Exxon’s internet earnings in fiscal 2022 tailed solely that of

Apple Inc.,

Microsoft Corp.

and Google dad or mum

Alphabet Inc.,

restoring its place as one in all America’s most affluent corporations. 

Exxon shares are up about 46% over the previous yr, as of early buying and selling Thursday. It had the third-best whole shareholder return within the S&P 500 index in 2022, after two different oil corporations,

Occidental Petroleum Corp.

and

Hess Corp.

,

FactSet

knowledge present.

Job cuts have slowed throughout the oil {industry} as commodity costs have surged. Different segments of the U.S. financial system have been shedding jobs in anticipation of a potential financial downturn, together with the know-how sector, which has seen tens of 1000’s of jobs reduce in current months. Exxon’s ongoing efforts to chop prices show that even the resurgent oil {industry} is treading fastidiously.

One group Exxon plans to determine in Could, known as International Enterprise Options, will mix a lot of its assist capabilities together with monetary providers, procurement and workforce enablement, which incorporates the corporate’s advantages administration and human-resources teams. 

Exxon stated it could kind one other group, known as ExxonMobil Provide Chain, the identical month, merging its logistics, supplies administration and different teams to assist management prices in its provide chain. Someday later this yr, the corporate additionally plans to create a worldwide commodities buying and selling group that can be part of its buying and selling operations in crude oil, petroleum merchandise, pure fuel, energy and freight. 

“No firm lasts so long as we now have—140 years and counting—with no constant concentrate on adapting and reworking to win in a continuously altering market,” Exxon stated in its memo. It stated it’s seeking to capitalize on its built-in enterprise mannequin to “ship industry-leading returns.”

Exxon is looking for financial savings elsewhere. At its sprawling Houston-area campus, Exxon had stated it discovered that on a typical day it makes use of lower than 50% of the accessible house on its 385-acre campus, giant sufficient to deal with 10,000 employees. The corporate has employed a dealer to gauge outdoors curiosity in its unused house, The Wall Avenue Journal reported beforehand.

The corporate lately carried out a brand new approach for workers on the campus to work in nearer proximity, in areas it calls “collaboration neighborhoods,” and can transfer its company headquarters there later this yr from its Irving, Texas, places of work.

Write to Collin Eaton at collin.eaton@wsj.com