- The Washington Times - Thursday, December 16, 1999

Exxon Mobil Corp. will increase the size of the work force at its Fairfax County, Va., operations, even as the company gets rid of 16,000 workers worldwide.
Exxon’s purchase of Mobil means the work force of 2,100 at the Gallows Road campus built by Mobil will increase as much as 19 percent to 2,500 workers, Exxon Mobil spokesman Tom Cirigliano said.
The size of, the combined company’s Fairfax County work force has been a source of speculation since the merger was announced more than a year ago.
Exxon Mobil will make the former Mobil headquarters in Fairfax County the base for its “downstream” operations, which includes businesses that vary from research and refining operations to the marketing of products.
It’s that restructuring that will ensure the company’s work force doesn’t fall.
“I don’t know if I would characterize it as being saved. But the upstream and downstream operations are the guts of the business, and that’s where you need the people,” Mr. Cirigliano said.
Exxon Mobil’s “upstream” business consists of exploration and fuel production operations.
The increase in local jobs was an unexpected surprise for Fairfax County, Fairfax County Chamber of Commerce chairman Jim Dyke said.
“I think it’s a major plus. I obviously feel for those individuals around the country who will lose their jobs,” Mr. Dyke said. “But I think as far as Fairfax County is concerned, this will keep our economy moving forward.”
While Fairfax County will see a net gain of up to 400 jobs, work-force changes are likely to cause some upheaval locally. Hundreds of workers are expected to be transferred to corporate headquarters in Irving, Texas, and other offices in Houston and Dallas as part of a major corporate restructuring in the wake of the merger finalized two weeks ago.
“People will see a lot of to-ing and fro-ing, a lot of coming and going,” Exxon Mobil Chairman Lee Raymond said.
Exxon Mobil employs 120,500 people now. It will cut 16,000 workers worldwide by 2002. That’s more than the 9,000 employees company officials said last year would lose their jobs.
The company also announced yesterday that the two entities eliminated 2,000 workers before completing their merger, but corporate officials would not say yesterday the number of workers each company laid off or where the laid-off employees worked.
Of the 16,000 people losing their jobs, about 10,000 workers will be laid off and given buyouts. Another 6,000 workers will lose their jobs through an “accelerated retirement” program, Exxon Mobil Vice Chairman Lucio Noto said.
About 10,000 workers will be cut from the work force within one year, with the company eliminating 6,000 jobs outside the United States and 4,000 U.S. jobs.
Exxon workers will bear the brunt of U.S. job cuts, with 2,400 Exxon workers and 1,600 Mobil workers losing their jobs in 2000.
Mr. Noto said it’s still not clear where all the cuts will occur. That includes the Fairfax County work force, and he could not predict how many people who work here will lose their jobs.
“We don’t have the geography for all 16,000 [jobs to be cut],” he said.
Among those on the chopping block are Exxon Mobil workers in executive positions. The combined company has 3,000 executives, and 1,000 executive-level employees will lose their jobs, Mr. Raymond said.
“That’s just a round number,” he said.
Mr. Raymond said he expects Exxon’s Dallas operations will lose 800 workers and Exxon’s Houston work force will lose up to 1,300 people.
Mr. Raymond also said yesterday the new company will save $3.8 billion as a result of its merger. That’s an increase from the $2.8 billion the companies had expected to save when they announced the merger Dec. 1, 1998.
Much of the savings will come through trimming the work force.
The other significant impact of Exxon’s purchase of Mobil was the Federal Trade Commission’s mandate that the new company sell 2,431 gas stations, affecting independent franchise holders. Connecticut-based Tosco Corp. said Dec. 2 it will buy 1,740 stations for $860 million.

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