HOUSTON — ExxonMobil announced Monday that it is moving its corporate headquarters from Irving to their campus north of Houston.
The announcement is part of the company’s plan to further streamline its business structure by combining chemical and downstream companies and centralizing technology and engineering.
ExxonMobil said the move from Irving to the Houston area will be completed mid-year 2023.
“We greatly value our long history in Irving and appreciate the strong ties we have developed in the North Texas community,” Darren Woods, chairman and chief executive officer, said. “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.”
According to the release, effective April 1, the company will be organized along three business lines – ExxonMobil Upstream Company, ExxonMobil Product Solutions and ExxonMobil Low Carbon Solutions. They will be supported by a single technology organization, ExxonMobil Technology and Engineering.
"They’re bringing 250 down. Certainly, they have the space for them because they made some rather severe layoffs last year and the year before," KHOU 11 Energy Expert Ed Hirs said.
ExxonMobil said the CEO and corporate staff will be asked to relocate. Hirs said the move will help streamline the company’s business by putting management closer to its operating side of the business.
"This just makes a lot of sense and rather than having a lot of folks flying back and forth from Houston to Dallas and so on. It’s a consolidation that is rational," Hirs said.
Hirs said a bulk of the company's staff had already made the move to the area several years ago when they built the campus.
"In the big scheme of things, there’s not going to be any impact, really. Any impact will be internal to ExxonMobil with perhaps a great collegiality and camaraderie with the corporation.
While the move won’t change how much you pay at the pump, Hirs said having everyone under the same roof is good for business.
According to the release, ExxonMobil is on track to exceed $6 billion in structural cost savings by 2023, compared to 2019, driven by savings from the new business structure and measures such as centralizing procurement, digital transformation of processes, and right-sizing programs that were announced in 2020.
“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,” Woods said.
Statement on Behalf of Greater Houston Partnership President and CEO Bob Harvey:
“We are thrilled with today’s news. ExxonMobil’s move further solidifies Houston’s position as the Energy Capital of the World. ExxonMobil is a key participant in our Houston Energy Transition Initiative, and we look forward to working with the company as we continue to position Houston to lead the energy transition to a low-carbon future.
"In addition, ExxonMobil’s announcement represents the third Fortune 500 headquarters announcement in greater Houston in 13 months, solidifying our position as the number 3 Fortune 500 headquarters city in the nation.”