US Energy giant ExxonMobil announced plans for reduction to its US staffing levels due to “current unprecedented market conditions”, the company said in a statement on Thursday.
The move came after the company's decision to cut up to 1,600 jobs in its European affiliates in October to mitigate the negative impact of the novel coronavirus (COVID-19) on weak global oil demand and low oil prices.
“The impact of COVID-19 on the demand for ExxonMobil’s products has increased the urgency of the ongoing efficiency work,” the company said.
As part of its extensive global review announced earlier this year, the company said it anticipates approximately 1,900 employees primarily at its management offices in Houston, Texas will be affected through voluntary and involuntary programs.
ExxonMobil’s workforce reductions “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.”
The company expects the reductions to improve the company’s long-term cost competitiveness and ensure that the company manages through the current unprecedented market conditions.
Employees who were separated through involuntary programs will be provided with support, including severance and outplacement services, it said.
By Sibel Morrow