ExxonMobil Lays Off 14, 000 Following Dwindling Oil Demand
ExxonMobil has announced plans to cut its global workforce by 15 per cent in the next two years.
The cuts will come through attrition, targeted redundancy programs in 2021, and scaled-back hiring in some countries.
ExxonMobil spokesman, Casey Norton, said 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.
Exxon Mobil 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 is considered a major shock in the industry, coming right behind Shell’s decision to ease out 9,000 job globally, which includes Nigeria. Chevron also has plans to reduce its staff strength in Nigeria by 25%. BP Plc plans to slash 10,000 jobs.
ExxonMobil said the staff reduction is part of the latest effort by the management to curtail spending and halt the worst string of quarterly losses since Exxon assumed its modern form with the 1999 takeover of Mobil Corp.
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.”
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 cuts includes 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.
By Chibisi Ohakah, Abuja