Exxon Mobil will cut 1,900 jobs in the US - mostly in Houston - as pandemic continues to hurt energy demand
Exxon Mobil announced Thursday it will lay off about 1,900 employees in the US, mostly at its Houston, Texas office, as the COVID-19 pandemic batters energy demand.
The cuts come as Exxon seeks to slash its global workforce by 15 percent over the next two years.
Exxon said the job cuts, part of a global reorganization, will come mainly from its Houston office and will include voluntary and involuntary programs.
Employees who are separated through involuntary programs will be provided severance and outplacement services.
Exxon Mobil announced Thursday it will lay off about 1,900 employees in the US, mostly at its Houston, Texas office, as the COVID-19 pandemic batters energy demand
'The impact of COVID-19 on the demand for ExxonMobil’s products has increased the urgency of the ongoing efficiency work,' the company said in a statement.
'These actions will improve the company’s long-term cost competitiveness and ensure the company manages through the current unprecedented market conditions,' the company added.
The once mighty oil giant has been recently through difficult times also due to ill-timed bets on new oilfields and expansions.
It has promised to shed more than $10 billion this year in project spending and cut operating expenses 15 percent.
The company lost nearly $1.7 billion in the first six months and is expected to post another quarterly loss on Friday.
The total cuts will affect about 14,000 people, split between employees and contractors, according to Bloomberg, a figure that includes US cuts as well as layoffs and retirements previously announced in Europe and Australia and future reductions in Canada.
'These actions will improve the company’s long-term cost competitiveness and ensure the company manages through the current unprecedented market conditions,' the company said in a statement Thursday. CEO Darren Woods above
As of December 31 Exxon’s in-house workforce stood at 74,900 people.
Exxon isn’t the only oil giant to cut jobs in response to the pandemic.
Bp Plc plans to cut 10,000 jobs, Royal Dutch Shell Plc will cut 9,000 roles and Chevron Corp has announced 6,000 cuts.
The stock has plunged 54 percent this year. Its dividend yield is now more than 10 percent, indicating that investors are anticipating a cut.
Exxon maintained the quarterly payout on Wednesday, and is expected to post its third consecutive quarterly loss when it reports earnings tomorrow.
Its shares were trading up 2.3 percent higher at $32.29 on Thursday.