Exxon to cut 14,000 jobs as pandemic hits oil demand

In this news, we discuss the Exxon to cut 14,000 jobs as pandemic hits oil demand.

(Reuters) – Exxon Mobil Corp XOM.N said on Thursday it could cut its global workforce by around 15%, including deep cuts to white-collar workers in the United States, as the COVID-19 pandemic beats energy demand and prices.

Exxon and other oil producers have cut costs due to a collapse in demand for oil and inappropriate bets on new projects. America’s largest oil company earlier announced more than $ 10 billion in budget cuts this year.

“The impact of COVID-19 on demand for Exxon Mobil’s products has increased the urgency of the ongoing efficiency work,” the company said in a statement.

It is estimated that 14,000 employees globally, or 15%, could lose their jobs, including contractors, spokesman Casey Norton said. This figure will include losses related to restructuring, retirements and exits based on performance. Exxon had around 88,300 workers, including 13,300 contractors, at the end of last year.

The company is not targeting a fixed number of jobs, but expects the outcome of its current case review to eliminate around 15% of its current workforce.

Exxon, which has struggled in recent years to regain a foothold after misplaced bets on shale gas and exploration in Russia, has lost nearly $ 1.7 billion in the first six months of the year . It is expected to report a record third consecutive quarterly loss on Friday, and its third-quarter loss could reach $ 1.19 billion, according to Refinitiv IBES.

Exxon said the 1,900 US job cuts would come primarily from its Houston-area campus, home of its US oil and gas operations.

Earlier this month, Exxon said it would cut 1,600 jobs in Europe. He announced cuts in Australia.

Exxon shares were trading 4% higher at $ 32.85 on Thursday.

Ahead of the pandemic, managing director Darren Woods pursued an ambitious spending plan to boost oil production, convinced that a growing global middle class would demand more of its products.

Royal Dutch Shell Plc RDSa.L and BP Plc BP.L also announced staff cuts of up to 15%. Chevron Corp’s CVX.N predicts cuts of 10% to 15% would mean a reduction of 4,500 to 6,750 jobs. It will also cut around 570 additional jobs as part of its acquisition of Noble Energy.

Reporting by Jennifer Hiller in Houston and Arathy S Nair in Bengaluru; Editing by Arun Koyyur and Marguerita Choy

Original © Thomson Reuters

Originally posted 2020-10-29 11:36:11.

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