Exxon Mobil Cutting 1,900 US Jobs as Oil Demand Slows


Exxon Mobil Corp said on Thursday it will lay off about 1,900 workers in the United States as the COVID-19 pandemic batters energy demand and costs.

Exxon was once the largest U.S. publicly traded business but has been cutting expenses due to a collapse in oil demand and ill-timed bets on new oilfields and growths. It has assured us to shed more than $10 billion this year in task spending and cut business expenses 15%.

The company lost nearly $1.7 billion in the first 6 months of the year and is expected to post another quarterly loss on Friday.

Exxon stated the task cuts, part of an international reorganization, will come primarily from its Houston, Texas office and will include voluntary and uncontrolled cuts.

“The effect of COVID-19 on the demand for Exxon Mobil’s items has increased the urgency of the continuous effectiveness work,” the business said in a statement.

Staff members who are separated through involuntary programs will get severance and outplacement services.

Exxon had nearly 75,000 worldwide staff members at the end of 2019 but has been reviewing its businesses on a country-by-country basis. Previously this month it stated it would cut 1,600 tasks in Europe. It has likewise announced cuts in Australia.

Prior to the pandemic, Chief Executive Darren Woods pursued an ambitious spending strategy to increase oil output and turn around drooping profits on a bet that a growing global middle class would require more of its products.

Exxon on Wednesday stated it would continue to hold stable its quarterly shareholder dividend payments, which cost it nearly $15 billion per year.

Its shares were trading up 2.3% higher at $32.29 on Thursday.

Royal Dutch Shell Plc and BP Plc likewise have laid out as much as 15% labor force cuts. Chevron Corp’s prepared cuts of 10% -15% would indicate a reduction of between 4,500 and 6,750 tasks. It will also cut approximately another 570 positions as part of its acquisition of Noble Energy.

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