Exxon Mobil Corp. has recently announced plans to consolidate its North American research and technology operations into a single hub located at its Houston headquarters. This decision will result in the closure of campuses in Clinton, New Jersey, and Sarnia in Ontario. About 700 employees will be affected by these closures, with the majority of them being offered roles in Houston. Exxon spokeswoman Emily Mir stated that the moves will be carried out in phases and will be fully completed by 2028.
This relocation is part of the company’s strategy to streamline its business divisions and cut costs by $15 billion by 2027 compared to 2019 levels. As of now, the company has achieved two-thirds of its cost reduction target. The consolidation of research and technology operations in Houston marks a strategic shift for Exxon as it aims to optimize its operations and drive future innovation.
The Clinton campus housed the Exxon Mobil Research and Engineering division, which was responsible for developing many of the company’s patented products over several decades. The campus also played a significant role in climate research during the 1970s and 1980s. By co-locating its North American technology organizations with its business lines in Houston, Exxon believes it will be able to more effectively develop and commercialize innovative technology. This relocation is expected to enhance their research capabilities and establish a solid foundation for future growth.