Oil and gas giant Exxon Mobil has announced plans to cut nearly 400 jobs in Texas following its recent merger with Pioneer Natural. The Texas Workforce Commission (TWC) announced the decision through a Worker Adjustment and Retraining Notice (WARN).
What is a WARN Notice?
A WARN notice is a legal document issued for mass layoffs. According to the US Department of Labor, companies are required to provide advance notice to affected employees before laying off large numbers of employees.
Where will the cuts impact? Exxon Mobil’s decision will affect 397 employees at five locations in Big Lake, Irving and Midland, Texas. This reduction will be phased from December 2024 to May 2026.
The cuts will have the biggest impact at Hidden Ridge in Irving, where a total of 376 employees will be laid off.
Explanation of the company:-
“Our employment policies have not changed,” Exxon Mobil explained. “The success of this merger is dependent on the retention of Pioneer’s skilled workforce. More than 1,900 Pioneer employees are losing their jobs as part of this merger.”
Abatement schedule and location The abatement process will be completed gradually. The employees will be retrenched in a phased manner as follows:
777 Hidden Ridge, Irving (376 total employees)
• 103 employees: 31 December 2024
• 46 employees: March 31, 2025
• 82 employees: 30 June 2025
• 28 employees: 30 September 2025
• 11 employees: 31 December 2025
• 74 employees: March 31, 2026
• 32 employees: 3 May 2026
2011 N Crescent in Midland – 3 employees total
• 3 employees on June 30, 2025
1921 US Highway 67, Big Lake (3 employees)
• 1 Employee: 31 December 2024
• 2 employees: March 31, 2025
4815 AD. Highway 80, Midland (6 employees)
• 2 Employees: 31 December 2024
• 3 employees: 30 June 2025
• 1 employee: March 31, 2026
3617 N. Big Spring Street, Midland (9 employees)
• 4 employees: 31 December 2024
• 2 employees: March 31, 2025
• 1 employee: 30 June 2025
• 2 employees: March 31, 2026
Economic and social consequences:-
Families affected by the 400- employee cut will be financially burdened. Especially in these parts of Texas, where the oil and gas industry is the main source of employment.
This decision by a major company like Exxon Mobil also sheds light on the current situation in the oil and gas sector. The decision to cut staff seems to have been taken to improve efficiency after the merger.
New opportunity or challenge?
Employees who will be laid off will need help finding new opportunities. It becomes important for companies to implement redeployment programs for such employees. The Texas Workforce Commission and other local agencies will seek to provide training and employment opportunities for these employees to learn new skills.
It will be important to see how this major post- merger decision to cut staff affects the industry and society over the next two years.