ExxonMobil plans massive job cuts

  •   30/10/2020 - 15h57
  •   HARMANT Adeline

The oil industry giant ExxonMobil announced the bad news yesterday in a press release. The group plans to cut no less than 14,000 jobs worldwide, which still represents nearly 15% of the company's workforce. Of course, this decision is the result of the group's significant losses in the course of the year 2020 due to the covid-19 pandemic which hit this sector of activity hard. The leader of this sector of activity in the United States had however let predict such a sentence. Indeed, he had previously announced a cost reduction plan of more than 10 billion dollars or 8.6 billion euros for this year. In the press release announcing the reduction, ExxonMobil said the impact of the new coronavirus on demand for the company's products has reinforced the urgency of the efficiency work underway.

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ExxonMobil plans massive job cuts
Image copyright: Mike Mozart

Declining quarterly results expected today :

It should also be noted that the ExxonMobil Group is scheduled to release its quarterly results on Friday, October 30. The latter should, unsurprisingly, focus on a significant loss and for the third consecutive quarter. Indeed, it should be noted that during the first half of 2020, the group has already lost nearly 1.7 billion dollars. Thus and as far as the company's workforce is concerned, Exxon does not set any particular target but estimates that the current review of its activities should lead to the departure of nearly 15% of its current staff worldwide.

More specifically, these job cuts will of course involve restructuring, retirements and performance-related departures. At least that is what group spokeswoman Casey Norton said yesterday. Geographically and in terms of the distribution of these job cuts, 1,900 positions will be eliminated in the United States, mainly at the US headquarters in Houston.

It should also be noted that the ExxonMobil group employed nearly 88,300 people worldwide last year.

 

The effect of this announcement on ExxonMobil's share price:

The announcement of this new decision, which is part of the Group's strategic plan to reduce costs, has been well received by the markets. Indeed, ExxonMobil's stock price climbed 4% during Thursday's session and ended the session at $32.85 on Wall Street, in anticipation of improved profitability and a way out of the group's health crisis.