Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Exxon to cut 14,000 jobs as pandemic hits oil demand

10/29/2020 | 02:27pm EST
FILE PHOTO: A view of the Exxonmobil Baton Rouge Chemical Plant in Baton Rouge, Louisiana.

(Reuters) - Exxon Mobil Corp said on Thursday it could cut its global workforce by about 15%, including deep white-collar staff reductions in the United States, as the COVID-19 pandemic batters energy demand and prices.

Exxon and other oil producers have been slashing costs due to a collapse in oil demand and ill-timed bets on new projects. The top U.S. oil company earlier outlined more than $10 billion in budget cuts this year.

"The impact of COVID-19 on the demand for Exxon Mobil's products has increased the urgency of the ongoing efficiency work," the company said in a statement.

An estimated 14,000 employees globally, or 15%, could lose jobs, including contractors, spokesman Casey Norton said. The figure will include loses from restructurings, retirements and performance-based exits. Exxon had about 88,300 workers, including 13,300 contractors, at the end of last year.

The company is not targeting a fixed number of jobs but does expect the result of its ongoing business review to eliminate about 15% of its current staffing.

Exxon, which has struggled in recent years to regain footing after misplaced bets on shale gas and Russia exploration, lost nearly $1.7 billion in the first six months of the year. It is expected to report a record-setting third straight quarterly loss on Friday, and its third-quarter loss could reach $1.19 billion, according to Refinitiv IBES.

Exxon said the 1,900 U.S. job cuts will come mainly from its Houston-area campus, the headquarters for its U.S. oil and gas businesses.

Earlier this month, Exxon said it would cut 1,600 jobs in Europe. It has announced cuts in Australia.

Exxon shares were trading 4% higher at $32.85 on Thursday.

Prior to the pandemic, Chief Executive Darren Woods pursued an ambitious spending plan to boost oil output in the belief a growing global middle class would demand more of its products.

Royal Dutch Shell Plc and BP Plc also have outlined up to 15% workforce cuts. Chevron Corp's planned cuts of 10%-15% would imply a reduction of between 4,500 and 6,750 jobs. It will also cut roughly another 570 positions as part of its acquisition of Noble Energy.

(Reporting by Jennifer Hiller in Houston and Arathy S Nair in Bengaluru; Editing by Arun Koyyur and Marguerita Choy)

By Jennifer Hiller


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
BP PLC -0.23% 262.9 Delayed Quote.-44.25%
CHEVRON CORPORATION -0.90% 91.31 Delayed Quote.-24.23%
EXXON MOBIL CORPORATION -1.52% 40.19 Delayed Quote.-42.40%
LONDON BRENT OIL 1.13% 48.24 Delayed Quote.-26.00%
NOBLE ENERGY, INC. 1.44% 8.46 End-of-day quote.-65.94%
ROYAL DUTCH SHELL PLC -0.15% 15.12 Delayed Quote.-42.21%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 0.16% 75.975 Delayed Quote.22.05%
WTI 1.29% 45.54 Delayed Quote.-25.37%
Latest news "Economy & Forex"
12:35aPOLO RESOURCES : Hibiscus Petroleum - Investment Update
PU
12:01aFAIR AND EFFECTIVE TAXATION : Council adopts conclusions
PU
11/27SONY : Pandemic fears, online deals thin U.S. Black Friday crowds
RE
11/27TESLA : could widen release of 'self-driving' software in two weeks
RE
11/27HSBC : Allowing border agents to question Huawei CFO before her arrest was best, officer testifies
RE
11/27Fitch downgrades Sri Lanka on rising default risk
RE
11/27Hyundai, Kia agree to $210 million U.S. auto safety civil penalty
RE
11/27EU delays rules on carbon market permit handouts
RE
11/27OPEC+ panel's informal online talks postponed to Sunday - source
RE
11/27EXCLUSIVE : VW CEO pushes for contract extension in vote of confidence move - sources
RE
Latest news "Economy & Forex"