ExxonMobil said Thursday it plans to reduce its U.S. staffing levels by about 1,900 through “voluntary and involuntary programs.”
The job cuts follow an “extensive global review announced earlier this year,” it said. The news came one day before third quarter results are scheduled to be issued.
Job losses are planned “primarily at its management offices in Houston.”
The Irving, TX-based supermajor employs about 70,000 people worldwide, including an estimated 16,000 people in the Houston area.
The reductions “are the result of ongoing reorganizations and work-process changes that have been made over the past several years to improve efficiency and reduce costs,” the company stated.
“These actions will improve the company’s long-term cost competitiveness and ensure the company manages through the current unprecedented market conditions.”
The continuing impact of Covid-19 “on the demand for ExxonMobil’s products has increased the urgency of the ongoing efficiency work.”
The cuts “will impact employees and their families” and were put into action “only after comprehensive evaluation and thoughtful deliberation. Employees who are separated through involuntary programs will be provided with support, including severance and outplacement services.”
During the annual meeting in late May, CEO Darren Woods had said no jobs were on the line. During a town hall meeting on Wednesday at the company’s Spring campus near Houston, Woods said the company was reviewing all its global businesses. He said the assessment of North American operations was nearly complete.
According to a letter sent to the workforce, Woods said, “We still have some significant headwinds, more work to do and, unfortunately, further reductions are necessary. Making the organization more efficient and more nimble will reduce the number of required positions, and unfortunately, reduce the number of people we need.”
ExxonMobil is far from alone in announcing massive layoffs.
BP plc CEO Bernard Looney said during the company’s third quarter conference call half of the senior executives were losing their jobs, falling to 120. In total, BP’s headcount has been cut by around 2,800 to date this year, he noted.
“We continue to expect a total reduction of around 10,000 positions, the majority of which will happen by the end of this year,” Looney said. “And we are removing layers. In the new organization, around 50% of roles will be within five layers of the CEO,” versus 20% in the legacy business.
Fellow supermajor Royal Dutch Shell plc, also has indicated plans to lay off thousands of people worldwide as it trims its operations.
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