Exxon Mobil Corporation has announced that it would reduce its global workforce by 14,000 being the 15 per cent of the workforce by the end of 2022. The company also failed to increase 2019 dividend for the first time in the last 18 years.
The announcement of this unprecedented culling by North America’s biggest oil explorer was made as the coronavirus pandemic hits energy demand, prices, and struggles to preserve dividends. ExxonMobil said yesterday that it would cut around 1,900 jobs in the United States in its latest attempt to cut costs and protect its balance sheet amid low oil prices and weak global oil demand due to the pandemic.
The company has before this already said it would cut 1,600 jobs in Europe as part of efforts to rein in costs. “As part of an extensive global review announced earlier this year, the company plans to reduce staffing levels in the United States, primarily at its management offices in Houston, Texas. The company anticipates approximately 1,900 employees will be affected through voluntary and involuntary programs,” Exxon said in a statement on Thursday, a day before it is set to announce its Q3 earnings and a day after it kept its quarterly dividend flat for the first time since 1982.