US Energy giant ExxonMobil announced plans on Tuesday to cut up to 1,600 jobs in its European affiliates to mitigate the negative impact of the novel coronavirus (COVID-19) on weak global oil demand and low oil prices.
The company said “significant actions” are needed to improve cost competitiveness to tackle the depletion of demand caused by the coronavirus pandemic.
ExxonMobil said the European workforce reduction would continue up to the end of 2021, adding that Europe would still remain an important market for ExxonMobil.
The company said the move followed some insight gained through reorganization and work-process changes made over the past several years to improve efficiency and reduce costs.
However, the company said the impact of COVID-19 on the demand for ExxonMobil’s products had increased the urgency of its ongoing efficiency efforts.
By Sibel Morrow