COVID-19 pandemic is biting the global crude oil demand. ExxonMobil, a global player in the oil industry, is about to undertake low shedding in manpower. In the process, 14,000 of company’s staffers will soon join the crowded labour market.
ExxonMobil spokesman, Casey Norton, said the corporation plans to cut its global workforce by 15% in the next two years.
The total reduction means the company will reduce its workforce by about 14,000 people, split between employees and contractors from year-end 2019 levels.
The cuts will come through attrition, targeted redundancy programmes in 2021, and scaled-back hiring in some countries.
ExxonMobil along with other oil producers have been cutting costs due to a collapse in oil demand and prices, as well as untimely stalk on new projects.
Nigeria is one of ExxonMobil biggest operational bases in oil and gas exploration and production globally.
This development will be another setback for the industry, after Shell announced 9,000 job cuts globally, which includes Nigeria, and the announcement by Chevron that it plans to reduce its staff strength in Nigeria by 25 per cent.
BP Plc plans to slash 10,000 jobs, and Chevron Corporation has announced around 6,000 reductions.
However, while making the announcement in a statement, the company disclosed that, the highest job cut will come from its headquarters in Houston.
A breakdown of the development include 1,900 U.S. jobs majorly at Houston, the headquarters for its US oil and gas businesses.
There will be layoffs previously announced in Europe and Australia and reductions in the number of contractors, some of which have already taken place.
The staff reduction is part of the latest effort by the Chief Executive Officer, Darren Woods, to curtail spending and halt the worst string of quarterly losses since Exxon assumed its modern form with the 1999 takeover of Mobil Corporation.
According to the statement, “These actions will improve the company’s long-term cost competitiveness and ensure the company manages through the current unprecedented market conditions.’’
