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ExxonMobil announces further layoffs amid ongoing Covid-19 crackdown on oil demand



View of the ExxonMobil oil refinery in Baytown, Texas.

Jessica Rinaldi (Reuters)

Exxon Mobil said on Thursday that as the energy giant continues to be under pressure from the coronavirus pandemic, it intends to reduce its US employees by approximately 1,900. The layoffs will be carried out through a combination of voluntary and involuntary programs.

Exxon Mobil said the layoffs are part of an ongoing restructuring aimed at improving efficiency and reducing costs.

The company said in a statement: “These measures will improve the company̵

7;s long-term cost competitiveness and ensure that the company manages under current unprecedented market conditions.” “The impact of COVID-19 on ExxonMobil’s product demand has increased. The urgency of ongoing efficiency work.”

In early October, Exxon Mobil stated that it would cut 1,600 positions in its European operations by the end of 2021. According to Jennifer Rowland of Edward Jones, the combined layoffs account for approximately 5% of ExxonMobil’s global workforce.

The announcement comes as the oil and gas industry continues to feel the pain of the coronavirus pandemic. The U.S. oil benchmark West Texas Intermediate (West Texas Intermediate) has recovered since it fell to negative value in April at a record time, but the transaction price of the contract is still at a significant discount to the previous price.

WTI traded at approximately US$36 on Thursday. As recently as January, its trading price was still above US$62 per barrel.

In the face of falling prices, energy companies have taken drastic measures to improve their balance sheets, including layoffs and suspension of dividends in some cases.

ExxonMobil has repeatedly stated that dividends are still a priority. On Wednesday, the company maintained its fourth-quarter dividend at 87 cents per share, although this is the first time since 1982 that it has not increased its dividend payout ratio.

Exxon Mobil will report its third-quarter results on Friday before the market opens. The stock price rose 2.6% in midday trading. For the whole year, the stock fell 53%.


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