It is understood that ExxonMobil's layoffs this time mainly target its subsidiary Denbury. Denbury is an independent energy company focused on carbon capture, utilization, and storage (CCS) solutions and enhanced oil recovery, capturing and injecting over 4 million tons of industrial carbon dioxide annually.

In July 2023, ExxonMobil announced the acquisition of Denbury for $4.9 billion.

ExxonMobil stated that Denbury has the largest carbon dioxide pipeline network in the United States, with a total length of approximately 1300 miles, most of which are located in the largest carbon dioxide markets in Texas, Louisiana, and Mississippi.

The acquisition of Denbury reflects our determination to achieve profitable growth in our low-carbon solutions business by providing comprehensive carbon capture and storage services to a range of industries that are difficult to decarbonize, "said Darren Woods, CEO of ExxonMobil.

ExxonMobil's acquisition of Denbury also includes oil and gas businesses along the Gulf Coast and the Rocky Mountains.

These businesses include proven reserves totaling over 200 million barrels of oil equivalent, with current production of 47000 barrels of oil equivalent per day.

Until recently, ExxonMobil proposed to lay off employees at Denbury.

Oil giants are also making choices

In recent years, ExxonMobil has implemented multiple layoff plans. In the third quarter of 2020, ExxonMobil incurred a loss of $680 million, setting a record for three consecutive quarters of losses in the company's history.

To this end, ExxonMobil announced that it will reduce its global workforce by over 10% by the end of 2022, including 1900 positions in the United States and previously announced layoffs in Europe and Australia.

In 2021, due to the unprecedented market impact brought by COVID-19, ExxonMobil announced that it would cut 7% of its staff in Singapore and 300 jobs would be affected.

When performance declines, ExxonMobil's response strategy is to "get through the winter" by laying off employees. ExxonMobil is not the only oil giant wielding a knife at itself.

In 2023, Shell's third quarter financial report showed a quarterly loss of $67 million for its renewable energy and energy solutions division.

Shell announced a layoff plan a week before the release of the financial report. The layoffs directly target the low-carbon business department, with a 15% reduction in its low-carbon solutions department globally, involving 200 positions.

Regarding the reasons for layoffs, Shell CEO Wael Sawan stated that it was to increase the company's profits. As Shell has responded, low-carbon businesses still face cost issues.

Shell CEO Wael Sawan once said, "Profit alone without sustainable development is not enough, and sustainable development without profit support is also not feasible. Both are needed

Oil giants are also striving to find a balance between profits and sustainability.