Exxon announces U.S. job cuts, global workforce could see 15% reduction

A view of the Exxon Mobil refinery in Baytown, Texas.

Jessica Rinaldi | Reuters

Exxon stated Thursday that it intends to cut back its U.S. employees by round 1,900 workers, with global workforce reductions probably rising to as a lot as 15% because the vitality big continues to see its operations pressured by the coronavirus pandemic.

The U.S. layoffs will happen by means of a mixture of voluntary and involuntary packages. Exxon stated the reduction is a part of ongoing reorganization efforts geared toward bettering effectivity and lowering prices.

“These actions will improve the company’s long-term cost competitiveness and ensure the company manages through the current unprecedented market conditions,” an announcement from the corporate stated. “The impact of COVID-19 on the demand for ExxonMobil’s products has increased the urgency of the ongoing efficiency work.”

Earlier in October Exxon stated it was reducing its European operations by 1,600 positions by means of the top of 2021.

An Exxon spokesperson stated that the corporate is conducing country-by-country evaluations, which could end in a 15% reduction in its global workforce. The firm anticipates 14,000 contractors and workers to be affected by the already introduced packages. As of the top of 2019 Exxon had 88,300 workers.

The announcement comes because the oil and fuel trade continues to really feel the ache of the coronavirus pandemic. West Texas Intermediate, the U.S. oil benchmark, has recovered since plunging into unfavourable territory for the time time on report in April, however the contract nonetheless trades at a deep low cost to prior costs.

On Thursday WTI traded round $36. As lately as January it traded north of $62 per barrel.

Amid the decline in costs, vitality corporations have taken drastic measures to enhance their stability sheets, together with lowering employees and in some circumstances suspending dividends.

Exxon has repeatedly stated that its dividend stays a precedence. On Wednesday the corporate maintained its fourth quarter dividend at 87 cents per share, though this was the primary time since 1982 that it did not elevate its payout.

Exxon will report third quarter outcomes on Friday earlier than the market opens. Shares had been up 4% throughout afternoon buying and selling. For the 12 months, the inventory is down 53%.

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