Exxon weighs global job cuts after unveiling Australian lay-off plan


Exxon Mobil Corp is assessing worldwide job cuts as the global coronavirus pandemic slices into fuel demand, with the largest U.S. oil company announcing voluntary layoffs in Australia in the latest in a wave of cost cutting.

Exxon and other oil majors are axing jobs spurred by a historic collapse in fuel demand because of the COVID-19 pandemic.

Exxon’s job cuts will continue globally into 2021, with Australia the first country outside the United States where it has completed a review of its businesses, according to a person familiar with the process.

Prior to the pandemic, Chief Executive Darren Woods pursued an ambitious spending plan to boost oil output and turn around sagging profits on a bet that a growing global middle class would demand more of its products.

However, the company has instead slashed capital spending by 30% this year and warned of deeper cuts in 2021, as it tries to defend a dividend paying nearly 9%. Exxon in July delivered the first back-to-back quarterly losses in at least 36 years.

“We have evaluations underway on a country-by-country basis to assess possible additional efficiencies to right-size our business and make it stronger for the future,” spokesman Casey Norton, said in emailed comments to Reuters.

Source: Reuters