Exxon Mobil Corp. (XOM), disclosed in its 2022 annual report that it had 62,300 employees at the end of last year, which marked a third consecutive year that the oil giant’s workforce has been reduced. In 2019, the company had 74,900 employees; however, a sharp drop in oil prices to start 2020 due to the COVID-19 pandemic led to a 2,900 reduction to 72,000 employees at the end of 2020, followed by a 9,000 decline to 63,000 employees at the end of 2021, before another 700 jobs were cut in 2022.
Despite the workforce being reduced by a total of 12,600 employees since 2019, revenue has jumped by 56%, to $398.68 billion in 2022 from $255.58 billion in 2019. This indicates that revenue per employee nearly doubled to $6.40 million from $3.41 million. Furthermore, Exxon Mobil’s 2022 net income of $55.74 billion was nearly four times 2019 net income of $14.34 billion.
The oil giant’s stock ended 2022 at $110.30, which was 58.1% above the year-end 2019 price of $69.78. In comparison, continuous crude oil futures (CL00) ended 2022 at $80.26, up 31.4% from the end of 2019, while the S&P 500 (SPX) rose 18.8% from the end of 2019 through 2022.
Exxon Mobil’s declining workforce and increasing revenue is indicative of the company’s focus on cost-cutting and efficiency. In an effort to remain competitive in the market, the company has been streamlining operations, while still managing to increase profits. This is a testament to the company’s ability to be agile and adjust to the changing market conditions; a skill that has enabled them to remain a leader in the industry.
The company has also implemented a number of digital initiatives to increase efficiency and reduce costs. These initiatives include the use of advanced analytics, artificial intelligence, and machine learning to optimize operations, as well as the use of digital tools to improve customer service. Additionally, Exxon Mobil has invested heavily in renewable energy, such as solar, wind, and geothermal. The company has committed to reducing its emissions by 15% by 2025, which is a testament to its commitment to sustainability.
Exxon Mobil’s ability to remain competitive during a challenging period is a testament to its long-term strategy and focus on efficiency. The company has managed to reduce its workforce while still increasing revenue, and has implemented a number of digital initiatives to improve operations and customer service. Furthermore, the company’s commitment to sustainability has enabled it to remain a leader in the industry. As the market continues to evolve, Exxon Mobil’s ability to remain competitive and profitable is a testament to its long-term strategy and focus on efficiency.