Exxon To Lower 14,000 International Jobs, Together with 1,900 In U.S., As Pandemic Hurts Demand

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Exxon Mobil Corp mentioned on Thursday it might minimize the variety of international staff by 15% and would lay off about 1,900 staff in the USA because the COVID-19 pandemic batters power demand and costs.

Exxon was as soon as the biggest U.S. publicly traded firm, however has been slashing prices as a result of a collapse in oil demand and ill-timed bets on new oilfields and expansions. It has promised to shed greater than $10 billion this yr in mission spending and minimize working bills 15%.

An estimated 14,000 staff globally, or 15%, might lose jobs, together with contractors, spokesman Casey Norton mentioned. The cuts would come with every thing from layoffs to retirements or performance-based exits.

Exxon had about 88,300 employees final yr, together with 13,300 contractors.

“We’re not focusing on a headcount discount proportion,” Norton mentioned, including that the “finish outcome” of its country-by-country opinions “could also be shut to fifteen% of our international workforce.”

The corporate misplaced almost $1.7 billion within the first six months of the yr and is anticipated to put up one other quarterly loss on Friday.

Exxon mentioned the job cuts, a part of a worldwide reorganization, will come primarily from its Houston, Texas workplace and can embrace voluntary and involuntary cuts.

“The influence of COVID-19 on the demand for Exxon Mobil’s merchandise has elevated the urgency of the continued effectivity work,” the corporate mentioned in a press release.

Staff who’re separated by way of involuntary packages will obtain severance and outplacement companies.

Earlier this month it mentioned it might minimize 1,600 jobs in Europe. It has additionally introduced cuts in Australia.

Exxon shares have been buying and selling up 2.9% larger at $32.50 on Thursday.

Previous to the pandemic, Chief Govt Darren Woods pursued an bold spending plan to spice up oil output on a guess {that a} rising international center class would demand extra of its merchandise.

Royal Dutch Shell Plc and BP Plc even have outlined as much as 15% workforce cuts. Chevron Corp’s deliberate cuts of 10%-15% would suggest a discount of between 4,500 and 6,750 jobs. It would additionally minimize roughly one other 570 positions as a part of its acquisition of Noble Power.

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