Jobs Will Be Lost, Others Will Move at Exxon Mobil: Federal Trade Commission OKs Merger
Glanz, William, The Washington Times (Washington, DC)
Exxon Corp.'s purchase of Fairfax-based Mobil Corp. just weeks before Christmas will be a lump of coal for some of the company's 2,100 local workers.
Workers will find out later this week where changes to the corporate structure leave them, but buyouts, layoffs and transfers are a certainty.
The Federal Trade Commission approved the estimated $82 billion deal yesterday by a 4-0 vote, and the merger took effect immediately.
Fairfax will lose Mobil's corporate headquarters. The new Exxon Mobil will be headquartered in Irving, Texas, while Mobil's old headquarters in Fairfax will oversee the new firm's retail petroleum marketing and refining operations.
Company officials aren't sure how many workers Mobil's Fairfax facility will employ. Mobil moved from New York to Fairfax in 1980. It declined to let reporters on its corporate grounds yesterday.
The new Exxon Mobil - with a combined work force of about 120,500 workers - has said it plans to cut its work force by 9,000 workers.
"The cuts will come from both companies, and they will come from operations worldwide," Mobil spokesman David Dickson said after FTC approval.
Many local Mobil workers may have to relocate to stay with the new company.
"There will be some relocation," Mr. Dickson said.
Despite that, Mr. Dickson also predicted that Mobil's Fairfax facility could have more workers after the changes than it has now.
"A lot of these decisions haven't been made. Could the work force increase? Probably," Mr. Dickson said.
Exxon Mobil will begin holding meetings this week with employees to discuss the new corporate structure, find out who can stay with the company and who plans to accept a severance package approved by shareholders. …