Exxon to Cut 14,000 Jobs as Pandemic Hits Oil Demand

By Jennifer Hiller
Thursday, October 29, 2020

ExxonMobil Corp said on Thursday it could cut its global workforce by about 15%, including deep white-collar staff reductions in the United States, as the COVID-19 pandemic batters energy demand and prices.

Exxon and other oil producers have been slashing costs due to a collapse in oil demand and ill-timed bets on new projects. The top U.S. oil company earlier outlined more than $10 billion in budget cuts this year.

"The impact of COVID-19 on the demand for ExxonMobil's products has increased the urgency of the ongoing efficiency work," the company said in a statement.

An estimated 14,000 employees globally, or 15%, could lose jobs, including contractors, spokesman Casey Norton said. The figure will include loses from restructurings, retirements and performance-based exits. Exxon had about 88,300 workers, including 13,300 contractors, at the end of last year.

The company is not targeting a fixed number of jobs but does expect the result of its ongoing business review to eliminate about 15% of its current staffing.

Exxon, which has struggled in recent years to regain footing after misplaced bets on shale gas and Russia exploration, lost nearly $1.7 billion in the first six months of the year. It is expected to report a record-setting third straight quarterly loss on Friday, and its third-quarter loss could reach $1.19 billion, according to Refinitiv IBES.

Exxon said the 1,900 U.S. job cuts will come mainly from its Houston-area campus, the headquarters for its U.S. oil and gas businesses.

Earlier this month, Exxon said it would cut 1,600 jobs in Europe. It has announced cuts in Australia.

Exxon shares were trading 4% higher at $32.85 on Thursday.

Prior to the pandemic, Chief Executive Darren Woods pursued an ambitious spending plan to boost oil output in the belief a growing global middle class would demand more of its products.

Royal Dutch Shell Plc and BP Plc also have outlined up to 15% workforce cuts. Chevron Corp’s planned cuts of 10%-15% would imply a reduction of between 4,500 and 6,750 jobs. It will also cut roughly another 570 positions as part of its acquisition of Noble Energy.


(Reporting by Jennifer Hiller in Houston and Arathy S Nair in Bengaluru; Editing by Arun Koyyur and Marguerita Choy)

Categories: Industry News Activity Oil North America Jobs USA

Related Stories

Eni Strengthens LNG Ties with Japan

CNOOC Starts Production from Deepwater Gas Project in South China Sea

BP Sets Eyes on India’s Oil and Gas Opportunities

TotalEnergies Signs LNG Supply Deal with South Korea’s HD Hyundai Chemical

SBM Offshore’s FPSO for ExxonMobil’s Guyana Oil Project Takes Final Shape (Video)

Shelf Drilling to Consolidate Jack-Up Fleet and Resolve Funding Gaps via Triangular Merger

New Partner Joins Timor-Leste Offshore Gas Development

Shelf Drilling Sells Baltic Jack-Up Rig

ExxonMobil Selling Malaysia Oil and Gas Assets to Petronas

CIMC to Supply Hulls for Two FPSOs Being Built by Seatrium for Petrobras

Current News

Valeura Energy Consolidates Thai Oil and Gas Assets

TotalEnergies Inks 15-Year LNG Supply Deal with China’s Sinopec

Shelf Drilling Secures $200M Contract Extensions with Chevron for Thailand Ops

Floating Wind and the Taming of Subsea Spaghetti

Impending Shortage of Jackups within Ageing Asia Pacific Fleet

Equinor Tries Again for a Japan Offshore Wind Lease

Yinson Production Concludes Minority Stake Sale in FPSO Anna Nery

Sunda Energy Pushes Back Chuditch-2 Appraisal Well Drilling Date

CNOOC Starts Production at Another Oil Field in South China Sea

ABS Takes Charge of Digital Twin Project for Petrobras’ FPSOs

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com