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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 1, 1995
MOBIL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-7555 13-2850309
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
3225 Gallows Road
Fairfax, Virginia 22037-0001
Telephone: (703) 846-3000
(Address of principal executive offices)
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Item 5. Other Events
The Registrant hereby incorporates by reference herein the
information set forth in its News Release dated May 1, 1995, a
copy of which is annexed hereto as exhibit 99.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits.
99. Mobil Corporation News Release dated May 1,
1995 which announced a major restructuring of the company's
worldwide staff support services.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
REGISTRANT MOBIL CORPORATION
By /S/GORDON G. GARNEY
NAME AND TITLE Gordon G. Garney, Senior Assistant Secretary
DATE May 1, 1995
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EXHIBIT INDEX
EXHIBIT SUBMISSION MEDIA
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99. Mobil Corporation, Electronic
News Release dated
May 1, 1995
MOBIL EXPECTS OVER ONE BILLION DOLLARS IN
SAVINGS FROM NEW RESTRUCTURINGS
FAIRFAX, VA, May 1 -- Mobil Corporation Chairman Lucio A. Noto
announced today a major restructuring of the company's worldwide staff
support services. Work processes will be streamlined to create
efficiencies, which will lead to a reduction of about 4,000 people
from Mobil's current 14,500 staff support employees worldwide. These
changes and other associated improvements when fully implemented will
lead to annual pre-tax savings of approximately $750 million compared
to the 1994 levels, Mr. Noto said.
In addition to reductions among the staff groups, Mobil will also
eliminate 700 other positions in the U.S. downstream businesses.
Expense reductions from these and associated initiatives are expected
to save an additional pre-tax $300 million annually, Mr. Noto
reported.
In anticipation of these restructurings, Mobil will take an
approximate $300 million after-tax charge to earnings in the second
quarter of this year.
Both restructurings, which will reduce Mobil's worldwide regular
workforce of 51,000 by approximately 4,700, are expected to be
substantially completed by the end of the first quarter of l996.
Savings are expected to begin in the first quarter of 1996 building to
the indicated annualized levels by year end 1996. "We envision even
more savings as the changes take effect and employees identify
additional opportunities for efficiencies," Mr. Noto said.
In the staff services restructuring, a small corporate center
will support the Board of Directors and Executive Committee on matters
of corporate governance and strategy. To support Mobil's operating
businesses, most staff employees worldwide will be organized into
shared services strategically located to reflect the geography of
Mobil's businesses and to take advantage of economies of scale. Other
staff employees will remain in the operating businesses. At this
time, minimal relocation of employees is expected.
Mr. Noto explained that today's announcement marks the completion
of the first phase of the staff redesign project initiated by Mobil in
October l994. During this phase, fifty Mobil people worked full time,
along with many part time team members, to reengineer staff services.
This process identified significant efficiencies which have led to the
stated savings opportunities. Today marks the beginning of the second
phase of the project. Over two hundred Mobil people in task forces
around the world, with hundreds of others in part time support, will
complete work on detailed design, roles, responsibilities, and final
implementation.
Mr. Noto said, "We are in a fiercely competitive business
environment and changes in the way we run our business are essential
to our future. Failure to change means failure to compete in the long
term. These changes will strengthen our businesses, bring about
improvements in the way we work, and position us to respond more
quickly to the many opportunities available to us for growth. These
are the kind of changes we need to achieve the vision that we have set
for our corporation."
5/01/95
