Exxon Mobil Corp. has announced plans to consolidate its North American research and technology operations into a single hub located at its headquarters in Houston. The decision will result in the closure of campuses in Clinton, New Jersey, and Sarnia, Ontario. About 700 employees will be affected by the closing, most of whom will be offered roles in Houston.
The company believes that by co-locating its North American technology organizations with its business lines in Houston, it will be able to more efficiently develop and commercialize innovative technology. Emily Mir, Exxon spokeswoman, expressed that this relocation will enhance their research capabilities and establish a solid foundation for future growth.
Exxon has been streamlining its business divisions for the past four years, aiming to cut costs by $15 billion by 2027 compared to 2019 levels. So far, the company has achieved two-thirds of its cost-cutting goal. This 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.
Previously, the Clinton campus housed Exxon Mobil’s Research and Engineering division, which was responsible for the development of 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. This consolidation of research and technology operations in Houston will bring together all of Exxon’s North American operations under one roof, allowing for greater collaboration and synergy between different teams.