United States oil and gas giant ExxonMobil announced Monday it would slash 1,600 tasks in Europe, more than 11 percent of its labor force in the area, as it deals with the hit from the coronavirus slump.
” The impact of COVID-19 on the need for ExxonMobil ' s products has actually increased the seriousness of the ongoing effectiveness work,” the Texas-based business, stated in a declaration.
The business said the task cuts would take place by the end of next year but did not any additional details saying only that “Country-specific effects will depend on the business’s regional business footprint and market conditions.”
Facing reduced need for crude brought on by the coronavirus pandemic as well as the growing shift to green energy, ExxonMobil has seen its share value on Wall Street plummet by majority this year.
Last week, the company was quickly surpassed in market capitalization by NextEra Energy, a green-era power company which owns 2 Florida electrical power utilities.
ExxonMobil uses 75,000 employees worldwide, and 14,000 in Europe, said Europe is still crucial to its operations.
” However, significant actions are required at this time to enhance expense competitiveness and guarantee the company handles through these extraordinary market conditions,” the business stated.
Exxon is not alone in the energy industry in experiencing the COVID-19 crisis and the moving market.
Anglo-Dutch group Royal Dutch Shell said recently it would axe 9,000 jobs, more than 10 percent of its labor force, by 2022 to minimize costs.
And Shell competing BP revealed it would cut 15 percent of personnel amounting to 10,000 tasks.
Oil services group Schlumberger stated when announcing results in July it would lay off more than 21,000 employees equivalent to a quarter of personnel.
