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ExxonMobil plans to cut 14.000 jobs due to low oil demand from the Covid-19 pandemic

Written by Roberta Souza
Published 31/10/2020 às 19:20
ExxonMobil, oil, pandemic
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ExxonMobil, the US oil major, could reduce its global workforce by about 15 percent as the Covid-19 pandemic hurts energy demand and prices

ExxonMobil said this week that the company, like other oil producers, would be cutting costs due to a collapse in oil demand and poorly timed new projects. The major US oil company is forecasting more than $10 billion in budget cuts this year.

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"The impact of Covid-19 on demand for ExxonMobil's products has increased the urgency of continued efficiency work," the company told Reuters. ExxonMobil spokesman Casey Norton said about 14.000 employees worldwide, or 15 percent, could lose their jobs - including contractors. According to the news agency, the number will include losses with restructurings, retirements and performance exits. Exxon had about 88.300 workers – including 13.300 contractors – as of the end of last year.

The company is not targeting a fixed number of jobs, but expects the result of its ongoing business review to eliminate about 15 percent of its current staff.

The US oil major will also reduce its US workforce by about 1.900 employees. The company said its management offices in Houston will be primarily affected by the announced workforce reductions.

“The workforce reductions are the result of ongoing reorganizations and work process changes that have been made over the last few years to improve efficiency and reduce costs. These actions will improve the company's long-term cost competitiveness and ensure the company manages today's unprecedented market conditions. The impact of Covid-19 on demand for ExxonMobil's products has increased the urgency of continued efficiency work. The company recognizes that these decisions will impact employees and their families and has implemented these programs only after comprehensive evaluation and careful deliberation. Employees separated through involuntary programs will receive support, including severance and outplacement services," ExxonMobil told Reuters.

Shell and BP have also outlined workforce cuts of up to 15%. Another major player, Chevron said it plans to cut 10-15 percent. This would mean a reduction of between 4.500 and 6.750 jobs. It will also cut around 570 positions as part of its newly acquired Noble Energy.

Additionally, Cenovus Energy decided to cut between 20 and 25 percent of its workforce following the acquisition of Husky Energy.

Roberta Souza

Petroleum Engineer, postgraduate in Commissioning of Industrial Units, specialist in Industrial Corrosion. Get in touch to suggest an agenda, advertise job vacancies or advertise on our portal. We do not receive resumes

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