By suzanne downing 
ExxonMobil, the country’s largest oil and gas company, confirmed Tuesday it will lay off about 2,000 workers, representing up to 4% of its 62,000-person global workforce, as part of a company-wide efficiency strategy.
The reductions come as the Houston-based oil giant consolidates smaller offices into larger regional hubs, according to an internal memo distributed to employees. The move is part of an ongoing effort by Exxon to streamline operations and reduce costs amid shifting global energy markets. There was no word from the company about whether artificial intelligence advances are contributing to the company’s decision to lay off workers.
AI is playing a significant and growing role in ExxonMobil’s efficiency drives and in the broader oil and gas industry’s cost-saving efforts, which are directly linked to workforce reductions.
The company has integrated artificial intelligence into seismic imaging for exploration, predictive maintenance on rigs, and large-scale data analytics for global energy value chains.
In 2025, Exxon Mobil partnered with CoLab Software to deploy AI tools on offshore platforms, enhancing decision-making and reducing the need for human oversight. CEO Darren Woods has emphasized the importance of redesigning work processes to improve cost competitiveness, a strategy that aligns closely with the expansion of AI-enabled automation.
A company spokesman said the layoffs will not affect US-based employees. However, about half the cuts will come from Imperial Oil, the Canadian affiliate in which Exxon holds a majority stake. About 1,200 jobs will be cut in Norway and the European Union over the next two years.
Exxon, the largest US oil company, has been under pressure in recent years to improve efficiency as it navigates volatile energy prices and the global transition toward lower-carbon fuels. The company previously announced workforce reductions in 2020 during the Covid-19 pandemic, when plummeting demand for oil forced widespread cost-cutting across the industry.
The new layoffs are expected to be completed in the coming months.
Suzanne Downing