Exxon Mobil Eyes Further Cost Reductions After Surpassing $9 Billion Target

Exxon Mobil Corp.’s Chief Financial Officer, Kathy Mikells, highlighted the potential for additional “structural” cost reductions following the successful achievement of their $9 billion cost-cutting target three months ahead of schedule.

The energy giant has undertaken significant measures in the past four years to streamline operations, including shedding 13,000 jobs, which accounts for 17% of its global workforce.

These efforts, coupled with divestitures and corporate relocations, have led to a reduction of $9 billion in annual costs. This sum notably covers over half of Exxon’s dividend outlays.

“We’re really pleased with the continued execution of structural cost savings and obviously pleased that we got to that $9 billion mark this quarter, with clearly more to go next quarter and beyond,” stated Mikells.

Exxon Mobil is not resting on its laurels and plans to reveal more comprehensive insights into its cost-saving initiatives when announcing its corporate plan in December.

The company’s workforce now stood at 62,000 employees at the close of 2022, a reduction not seen in two decades.

Remarkably, this employee count is lower than that of BP Plc, even though Exxon’s market value is nearly four times greater.

Exxon Mobil’s relentless focus on cost management underscores its commitment to financial discipline and its determination to maximize efficiency in a challenging global energy landscape.

As they continue to adapt and refine their strategies, the energy giant remains committed to ensuring sustainable profitability for its shareholders.