Exxon Mobil Cuts Jobs in Texas After $60 Billion Pioneer Acquisition

By Katie Borchetta · August 15, 2024

The largest energy company in the nation, Exxon Mobil Corp., has revealed that it will cut jobs for Texas workers as it joins Pioneer Natural Resources Co. into its operations a couple months after finishing its acquisition of the former competitor.

The energy giant gave out 1,500 worker roles, while 59 positions are being eliminated because some workers declined the offers or held temporary roles that are no longer needed, according to a company filing with the Texas Workforce Commission this week.

The Houston-based company’s roughly $60 billion all-stock purchase of Pioneer Natural Resources came to a close in May. The deal was not only expected to double Exxon’s Permian Basin land holdings, but decrease $2 billion in costs for the company. Before the merger, Pioneer had about 2,000 employees working in Texas, both in office on the field. Included in the merger is the over 1 million-square-foot headquarters located in Irving, Texas – right outside of Dallas.

The consolidation of the companies combines Exxon’s 570,000 acres in Delaware and Midland Basin with Pioneer’s 850,000 acres in the Midland Basin, as well.

In a letter to the Texas Workforce Commission, Exxon Mobil made it clear that the job cuts will be permanent. 

In the company’s initiative to cut 59 jobs, 39 will be from the Irving location, with the rest to be cut from Exxon’s initial West Texas offices. The cuts will go into effect by the end of September.

The job cut is coming at a time where oil producers are dealing with a drop in demand for oil. However, acquiring Pioneer was Exxon’s largest deal in the last 20 years with the Irving-based company’s assets bringing in a record performance during Q2.