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Exxon Mobil Synopsis Ð- preparer
Exxon Mobil is one of the most powerful corporations in the oil industry. The company has faced several layoffs due to the decreasing stock values. The first layoff was with the merger of the two companies. Combined Exxon Mobil had 123,000 employees worldwide in 1998. The stockholders were becoming very unhappy with the decreasing stock value. Management agreed that jobs had to be eliminated to help the company survive. The decrease in jobs and other benefits aided in a 3.8 billion dollar annual savings. Exxon Mobil abolished 16,000 positions from its Houston, Texas location. Unlike some companies, 1000 cuts will come from it executive positions in its global operations. The task was completed by the end of 2002. Exxon Mobil in Baton Rouge, La is anticipating plant shutdowns and layoffs. The union has been very vocal in this business decision. Although the union do not believe the Louisiana plant will be hit hard it is inevitable salary employees will face downsizing. Top management is looking into cost-cutting measures at this site as well. Unlike other Exxon Mobil divisions, they are finding ways to improve the operating efficiencies that will not impact the size of the workforce.
Exxon Mobils decision to downsize helped the company to reorganized and keep up with the competition in the fast pace industry. Exxon Mobil was at the top of their game except for dwindling stocks. Despite the $85 billion dollar merger between the two companies, a few years earlier, the stocks had only risen by 2%. The news of downsizing was very distributing to the employees. Exxon Mobil had accomplished what is had set out to do. The company announced that its net income had doubled in the second quarters. Stakeholders were happy with the decision and the outcome. Exxon Mobil will continue to be a true giant in the industry for many years.