US oil and gas major ExxonMobil plans to reduce workforce levels across a number of its affiliates in Europe as part of the company’s worldwide review of its operations.
The latest move comes in the wake of the novel coronavirus outbreak as the pandemic continues to affect the energy markets globally.
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According to the company, the Covid-19 impact on the demand for Exxon’s products has ‘increased the urgency of the ongoing efficiency work’.
ExxonMobil noted that it plans to cut up to 1,600 jobs across its European operations by the end of next year.
These job cuts constitute to about 11% of the company’s workforce in the region.
ExxonMobil said in a statement: “Europe remains an important market for ExxonMobil, as evidenced by recent major investments.
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By GlobalData“However, significant actions are needed at this time to improve cost competitiveness and ensure the company manages through these unprecedented market conditions.”
ExxonMobil employs 75,000 workers worldwide, including 14,000 in Europe.
Due to declining fuel demand as a result of the coronavirus pandemic, as well as the transition towards green energy, ExxonMobil has witnessed its share value on Wall Street drop by over half this year, AFP reported.
Last week, Royal Dutch Shell said it would cut 9,000 jobs by 2022 as part of its efforts to reduce costs.
BP also announced that it would release 15% of its current staff, impacting nearly 10,000 jobs.
