ExxonMobil to move head office to Houston metro area

Gary Coronado/Houston Chronicle

ExxonMobil has announced that they will be moving their head office from Irving, TX to their campus in Spring, TX. The move will be completed by mid-2023.

Exxon has a market capitalization of $319 billion. When it relocates, it will be the largest in Houston, by market cap.



Exxon moved its head office from Manhattan to Irving in 1989. The current head office is 365,000 square feet and houses 250 employees, who have been offered relocation packages. Last year, Exxon put up for sale 50 acres of vacant land around its headquarters. In addition, it owns another 50 acres in the area.

Construction on the campus in Spring began in 2011 when oil was over $100 a barrel. It was completed in 2015, when oil was below $60. It is based on 385 acres and officially houses 10,000 employees. The campus is currently appraised at $890 million.

ExxonMobil also announced a reorganization as part of efforts to save $6 billion in cost savings by 2023;

  • The Downstream and Chemical segments will be combined into a segment called Product Solutions.
  • The US and International Upstream businesses, previously run separately, will be consolidated into one organization
  • A new segment called Low Carbon Solutions will be created.
  • Technology and Engineering groups will be combined into one shared service for the segments.

The cost-cutting is probably the result of pressure by an activist investor, Engine No 1, who won three seats on Exxon’s board in June 2021, despite only owning 0.02% of the stock.

In July, the company hired Kathryn Mikells as its new CFO. She joined from Diageo PLC, a drinks manufacturer and is the first woman to be appointed to the Executive leadership team at Exxon.

ExxonMobil news release

 

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