ExxonMobil Announces US Job Cuts
ExxonMobil (NYSE: XOM) has announced that it plans to reduce staffing levels in the United States, primarily at its management offices in Houston, Texas.
The company anticipates around 1,900 employees will be affected through voluntary and involuntary programs. ExxonMobil noted that the staff cuts are the result of ongoing reorganizations and work-process changes that have been made over the past several years to improve efficiency and reduce costs.
“These actions will improve the company’s long-term cost competitiveness and ensure the company manages through the current unprecedented market conditions,” ExxonMobil said in a statement posted on its website.
“The impact of Covid-19 on the demand for ExxonMobil’s products has increased the urgency of the ongoing efficiency work,” the company added.
ExxonMobil stated that it recognizes these decisions will impact employees and their families and added that it has put these programs in place “only after comprehensive evaluation and thoughtful deliberation”. Employees who are cut through involuntary programs will be provided with support, including severance and outplacement services, ExxonMobil revealed.
In an email sent to all ExxonMobil employees last week, the company’s chairman and chief executive officer, Darren Woods, warned that further reductions were necessary. Earlier this month, Exxon revealed that it planned to reduce staffing levels across a number of its European affiliates. Back in September, ExxonMobil Australia announced that it had commenced a voluntary redundancy program.
ExxonMobil describes itself as one of the largest publicly traded international energy companies. The business has a workforce of over 70,000 people and has been present in the U.S. since 1870 when John D. Rockefeller and his associates formed the Standard Oil Company, ExxonMobil’s website shows.
As of October 30, 9.29am CET, there have been 44.5 million confirmed cases of Covid-19 globally, with 1.17 million deaths, according to the latest figures from the World Health Organization.
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