Dwindling Oil demand: 14,000 ExxonMobil staff to lose jobs

As the Coronavirus (COVID-19) pandemic hits global crude oil demand, a fresh indication has emerged that, no fewer than 14, 000 staff of ExxonMobil will lose their jobs.

This is coming as the corporation disclosed plans to cut its global workforce by 15% in the next two years.

According to ExxonMobil spokesman, Casey Norton, the total reduction means the company will reduce its workforce by about 14,000 people, split between employees and contractors from year-end 2019 levels. The cuts will come through attrition, targeted redundancy programs in 2021, and scaled-back hiring in some countries.

Exxon Mobil along with other oil producers have been cutting costs due to a collapse in oil demand and prices, as well as untimely stalk on new projects.

Nigeria is one of ExxonMobil biggest operational bases in oil and gas exploration and production globally.

This development will be another setback for the industry, after Shell announced 9,000 job cuts globally, which includes Nigeria, and the announcement by Chevron that it plans to reduce its staff strength in Nigeria by 25 per cent.

BP Plc plans to slash 10,000 jobs, and Chevron Corp. has announced around 6,000 reductions.

However, while making the announcement in a statement, the company disclosed that, the highest job cut will come from its headquarters in Houston.

A breakdown of the development include 1,900 U.S. jobs majorly at Houston, the headquarters for its US oil and gas businesses.

There will be layoffs previously announced in Europe and Australia and reductions in the number of contractors, some of which have already taken place.

The staff reduction is part of the latest effort by the Chief Executive Officer, Darren Woods, to curtail spending and halt the worst string of quarterly losses since Exxon assumed its modern form with the 1999 takeover of Mobil Corp.

According to the statement, “These actions will improve the company’s long-term cost competitiveness and ensure the company manages through the current unprecedented market conditions.’’