A view of the Exxon Mobil refinery in Baytown, Texas.Jessica Rinaldi | ReutersExxon mentioned Thursday that it intends to scale back its U.S. emplo
A view of the Exxon Mobil refinery in Baytown, Texas.
Jessica Rinaldi | Reuters
Exxon mentioned Thursday that it intends to scale back its U.S. employees by round 1,900 workers, with international workforce reductions doubtlessly rising to as a lot as 15% because the vitality big continues to see its operations pressured by the coronavirus pandemic.
The U.S. layoffs will happen by a mixture of voluntary and involuntary packages. Exxon mentioned the discount is a part of ongoing reorganization efforts geared toward enhancing effectivity and decreasing prices.
“These actions will enhance the corporate’s long-term price competitiveness and make sure the firm manages by the present unprecedented market situations,” a press release from the corporate mentioned. “The affect of COVID-19 on the demand for ExxonMobil’s merchandise has elevated the urgency of the continuing effectivity work.”
Earlier in October Exxon mentioned it was chopping its European operations by 1,600 positions by the top of 2021.
An Exxon spokesperson mentioned that the corporate is conducing country-by-country critiques, which may end in a 15% discount in its international workforce. The corporate anticipates 14,000 contractors and workers to be affected by the already introduced packages. As of the top of 2019 Exxon had a worldwide workforce of 88,300, which included 13,300 contractors.
The announcement comes because the oil and gasoline business continues to really feel the ache of the coronavirus pandemic. West Texas Intermediate, the U.S. oil benchmark, has recovered since plunging into damaging territory for the time time on file in April, however the contract nonetheless trades at a deep low cost to prior costs.
On Thursday WTI traded round $36. As not too long ago as January it traded north of $62 per barrel.
Amid the decline in costs, vitality corporations have taken drastic measures to enhance their steadiness sheets, together with decreasing employees and in some instances suspending dividends.
Exxon has repeatedly mentioned that its dividend stays a precedence. On Wednesday the corporate maintained its fourth quarter dividend at 87 cents per share, though this was the primary time since 1982 that it did not elevate its payout.
Exxon will report third quarter outcomes on Friday earlier than the market opens. Shares have been up 4% throughout afternoon buying and selling. For the yr, the inventory is down 53%.
Correction: Exxon has a worldwide workforce of 88,300 common workers and contractors. An earlier model mischaracterized the determine.