Exxon Expects $200M in Job Cuts Charges

Jennifer Hiller
Thursday, May 6, 2021

Exxon Mobil Corp expects up to $200 million in charges this year related to job cuts in an era of cost savings, according to a regulatory filing.

The biggest U.S. oil producer has slashed costs, delayed projects and said it could trim an estimated 14,000 employees globally, or 15%, including contractors. Exxon reported its first annual loss last year as the COVID-19 pandemic battered energy demand.

The company will spend more this year than in 2020 as workers exit, according to the filing.

Total cash outflows would be between $400 million and $600 million, versus $47 million last year, according to the filing. Exxon had set aside some money last year toward the costs.

The severance cost estimate does not include job cuts related to changes in the company's portfolio, it said.

Reductions should be "substantially complete" by year-end, including voluntary and involuntary exits and the use of fewer in contractors, Exxon said.

In the first quarter the company had before-tax charges of $39 million mostly from employee separation costs in Singapore and Europe.

Cost savings from its global staffing review are likely to range between $1 billion and $2 billion per year versus 2019 levels, according to Wednesday's filing. 

(Reporting by Jennifer Hiller; Editing by Leslie Adler and David Gregorio)

Categories: North America Jobs People & Company News

Related Stories

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

ABL Secures Rig Moving Assignment with India's ONGC

Pakistan, Türkiye Deepen Oil and Gas Ties with Offshore Indus-C Block Deal

Propane’s Economic Edge for Ports During Trade Uncertainty

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Japan Picks Wood Mackenzie to Assess Trump-Backed Alaska LNG Scheme

Current News

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

ABL Secures Rig Moving Assignment with India's ONGC

Pakistan, Türkiye Deepen Oil and Gas Ties with Offshore Indus-C Block Deal

Eni-Petronas Gas Joint Venture Up for Launch in 2026

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