Business Essentials for Professionals


Following Launch Of Australian Lay-Offs, Exxon Contemplating Global Job Cuts

Following Launch Of Australian Lay-Offs, Exxon Contemplating Global Job Cuts
Following the announcement of a voluntary lay-off program in Australia, oil and gas giant Exxon Mobil Corp is currently contemplating implementing a spade of job cuts for its global operations, according to a spokesman of the company on Wednesday.
A never before witnessed drop in global oil and gas prices and a historic drop in demand in fuel because of the travel restrictions imposed to prevent the spread of the novel coronavirus pandemic has forced major oil companies like Exxon to embark on axing jobs to save costs.
In August Exxon had said that it was planning both capital and operating expense cuts in order to hold up its dividend following the company reporting losses in the first and second quarters of the current year. Exxon has already cut down on its capital expenditure for the current year by as much as 30 per cent to around $23 billion.
"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," the company’s spokesman Casey Norton, based at the company headquarters in Irving, Texas, said in emailed comments to the media.
The latest comments from the company representative marks a stark deviation of the company’s previous statement in July to the media when it had said that it was not planning any layoffs due to the pandemic and did not have any percentage targets to reduce its workforce on its mind through this year's employee reviews.
a review of its current and future project work in the country had been completed by Exxon, the company said in Australia and added that it was now looking out for volunteers in the company to quit the company on their own.
"This program will ensure the company manages through these unprecedented market conditions," Exxon said in a statement.
The percentage of its workforce that it was contemplating cutting down to cut down on costs was not made clear by the company. It however said that all employees who expressed an interest in the voluntary scheme would be considered in Australia.
"Until other study work is complete, it would be premature to draw conclusions for other countries," Norton said.
50 per cent of its stake in the Bass Strait oil and gas joint venture in southeastern Australia is now sought to be sold off by Exxon. According to analysts the Bass Strait venture could fetch an estimated $3 billion.
According to analysts, Exxon could also sell off or close down its Altona plant in Melbourne, which is the oldest refinery of Australia.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc