ExxonMobil is reportedly planning to cut between 5% and 10% of jobs annually at its offices in the US for the next three to five years.
The retrenchment plan comes as the company registered massive annual loss due to the Covid-19 pandemic crises.
The proposed plan, which will be implemented using the performance-evaluation system, will target low-rated employees, reported Bloomberg citing people familiar with the matter.
While the company’s 2021 performance evaluation is underway, the proposed performance-review process would mostly affect white-collar jobs in areas, including engineering, finance, and project management.
Exxon spokesman Casey Norton was cited by the news agency as saying: “Our annual performance assessment process has been occurring over the last several months.
“Where employees are not contributing to their highest ability, they may need to participate in an improvement plan. This is an annual process, which has been in place for many years, and it is meant to improve performance. This process is unrelated to workforce reduction plans.”
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The company’s latest performance improvement plan, however, is separate from its jobs cut plan announced last year whereby 14,000 employees are planned to be laid off by 2022.
As part of a cost-cutting strategy, Exxon is also considering halting employee-contribution matches and suspending bonuses, reported Bloomberg.
At the annual meeting in May 2021, ExxonMobil CEO Darren Woods said that the company achieved annual ‘structural cost reductions’ of $3bn in 2020 and plans to continue to make savings through 2023.
Woods said: “We’ve got additional work to continue to take advantage of the new organization and find opportunities to reduce our costs.”
The number of ExxonMobil employees at the US offices account for about 40% of the company’s total number of jobs globally.
Globally, the firm had 72,000 jobs at the end of 2020, the news agency reported citing a company filing.