Receive our newsletter – data, insights and analysis delivered to you
  1. News
October 30, 2020

ExxonMobil to cut jobs of US workforce as pandemic hits fuel demand

Oil major ExxonMobil has announced that it will reduce its workforce in the US by around 1,900 employees through both voluntary and involuntary programmes.

By Himaja Ganta

Oil major ExxonMobil has announced that it will reduce its workforce in the US by around 1,900 employees through both voluntary and involuntary programmes.

The move comes as the energy major continues to see its operations pressured by the coronavirus (Covid-19) pandemic, which shattered energy demand and oil prices.

ExxonMobil noted that the workforce levels will be downsized primarily at its Houston-based management offices.

ExxonMobil said in a statement: “The company recognises these decisions will impact employees and their families and has put these programmes in place only after comprehensive evaluation and thoughtful deliberation.

“Employees who are separated through involuntary programmes will be provided with support, including severance and outplacement services.”

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 drop by over half this year.

Content from our partners
Green investment: What gives Scotland multiple advantages
How the North of Tyne region is leveraging its legacy to define its future
Q&A with Chevron Lubricants’ Paul Sly, global industrial OEM specialist, and Nathan Knotts, global brand technical manager

Earlier this month, ExxonMobil confirmed plans to cut around 1,600 jobs across its European operations before the end of next year, stating ‘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.

Reuters cited Exxon spokesman Casey Norton as saying that the company’s global job cuts would impact about 14,000 employees, or roughly 15% of the workforce, including contractors.

Related Companies

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU