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

30 October 2020 (Last Updated October 30th, 2020 11:46)

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.

ExxonMobil to cut jobs of US workforce as pandemic hits fuel demand
ExxonMobil Global Headquarters. Credit: ExxonMobil.

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.

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.