US oil major ExxonMobil is looking to merge business units as part of its corporate reorganisation plan in order to reduce costs, reported The Wall Street Journal.
The firm, which recently posted a record net profit of $55.7bn for the full-year 2022, is planning to form three new organisations, according a memo sent by the company to its employees and viewed by WSJ.
One of three organisations, named Global Business Solutions, is planned to be established in May 2023.
This organisation will combine several of Exxon’s support functions including financial services, procurement, and workforce enablement, including benefits management and human-resources groups.
In the same month, Exxon is also planning to launch another organisation, ExxonMobil Supply Chain. It will house the company’s logistics, materials management, and other groups and will be responsible for controlling supply chain costs.
Later this year, the US firm plans to establish a global commodities trading group, named Global Trading. This will bring together Exxon’s trading operations in crude oil, petroleum products, natural gas, power, and freight.
In an email sent to employees and seen by Bloomberg News, Exxon said the Global Trading unit will focus on ‘driving commercial intensity and ultimately delivering industry-leading trading results’.
Exxon, in its memo, said: “No company lasts as long as we have, 140 years and counting, without a consistent focus on adapting and transforming to win in a constantly changing market.
People familiar with the matter said that the firm’s reorganistion plan would result in a limited number of job cuts. However, it remains unclear how many jobs would be affected.
In the memo, Exxon said the consolidation plan is not about headcount reductions.
Exxon spokesman Casey Norton was quoted by the WSJ as saying: “This is about bringing common groups together to better capture the scale of the global corporation.
“The new structure will provide growth and career development opportunities for our employees, and we are actively hiring in many areas.”