ExxonMobil to cut 1,900 US jobs as COVID-19 hits oil prices

ExxonMobil said on Thursday, October 29, it will eliminate 1,900 United States jobs as part of a global cost-cutting drive that will shrink its global workforce by about 15% over the next two years.

The US oil giant said the hit from the coronavirus pandemic – which has driven oil prices lower – was a factor in the downsizing, which will primarily impact management staff in Houston, through a mix of voluntary programs and involuntary layoffs.

The US job cuts are “the result of ongoing reorganizations,” the company said, adding “the impact of COVID-19 on the demand for ExxonMobil’s products has increased the urgency of the ongoing efficiency work.”

The latest move is part of the oil giant’s worldwide push to cut costs that will shrink its overall workforce by about 14,000 employee and contractor positions through the end of 2022.

The company had about 88,000 workers at the end of 2019, including just under 75,000 employees and around 13,300 contract workers, an ExxonMobil spokesman said.

The company plans to cut about 7,000 employee and 7,000 contract staff between the end of 2019 and the end of 2022, the spokesman said.

US oil prices currently trade below $40 a barrel, more than $15 lower than a year ago. That drop has pressured earnings at oil giants including ExxonMobil, which will release results on Friday, October 30.

Shares of ExxonMobil rose 2.2% to $32.27 in late-morning trading. – Rappler.com