US supermajor ExxonMobil is expected to slash its workforce in Europe as it continues to struggle with the drop to demand caused by the Covid-19 pandemic.
The move, similar to those made recently by fellow supermajors BP and Shell, will see a reduction of 1600 jobs across ExxonMobil’s affiliates in Europe.
'Significant actions needed'
ExxonMobil said Covid-19 had “increased the urgency” of reducing its costs and said the job losses would be made by the end of 2021.
The company said: “Significant actions are needed at this time to improve cost competitiveness and ensure the company manages through these unprecedented market conditions.
“Country-specific impacts will depend on the company’s local business footprint and market conditions,” ExxonMobil added in a statement.
ExxonMobil employed about 75,000 people worldwide as of the end of last year.
BP said in June it would axe 10,000 jobs to help cope with the impact of the pandemic, while Shell last week said it would cut up to 9000 positions by the end of 2022.
In July, ExxonMobil said it was considering making cuts to its workforce to keep on track with its plans to slash spending as it logged a $1.1 billion loss for the second quarter of 2020, down from a profit of $3.3 billion a year earlier.
Total revenues for the quarter were $32.61 billion, a massive decline from the $69.09 billion in the second quarter of 2019.
ExxonMobil previously laid out plans to cut its capital investments for 2020 from $33 billion to $23 billion after oil prices dropped earlier this year.
This year, the company resumed the sales process for a large package of non-operated assets in the UK central and northern North Sea, with interested parties due to submit bids in October.
In Romania, ExxonMobil is also “testing the market” for interests as it hopes to exit the giant Neptun Deep project in the Black Sea.