The chemical giant layoffs 'self-help', more than 10% of its European employees!

It is reported that ExxonMobil, the largest US oil company by market value, announced on the 5th that it will lay off a maximum of 1,600 employees in Europe before the end of next year, more than one-tenth of its European employees. As of the end of last year, Exxon Mobil had approximately 75,000 employees worldwide.

ExxonMobil said in a statement that the new crown pneumonia epidemic has hit oil demand and caused international oil prices to fall, and ExxonMobil urgently needs to cut costs to maintain operations. Exxon Mobil also warned that it may suffer a third consecutive quarterly loss this year. It recorded a huge loss of US$1.1 billion in the second quarter of this year, and it was the first time in 36 years that it had a net loss for two consecutive quarters.

In early September of this year, Exxon Mobil announced the implementation of a voluntary layoff plan in Australia, and said that it is considering the possibility of global layoffs, and plans to sell Australian assets to ensure the payment of dividends.

As the coronavirus pandemic caused oil prices to plummet, all aspects of ExxonMobil were also hit hard. It is understood that Exxon Mobil suffered losses in the first and second quarters of this year. The net profit in the third quarter is also expected to be negative. This has suppressed both its stock price and investor sentiment, prompting Exxon Mobil to accelerate cost cutting.

As part of these efforts, the oil giant has been severely weakening its influence in the European oil and gas sector. After leaving Norway, Exxon Mobil sold North Sea assets, which were estimated to be worth as much as $2 billion last year, but now, with the collapse of oil prices and the flu pandemic, these assets may become cheaper. Exxon Mobil sold its Norwegian business to the local Var Energi company last year for $4.5 billion.

Exxon Mobil will sell shares in 15 oil fields, which will contribute a total of 37,000 barrels per day to its total production this year. Two exploration blocks and ExxonMobil’s stake in the pipeline network in the area will also be sold. So far, about six companies have expressed interest in these assets.
However, during the epidemic, the oil company that is unsustainable is far more than ExxonMobil. Royal Dutch Shell said last week that it will lay off 9,000 employees by 2022, accounting for more than 10% of its total number of employees, in order to reduce operating costs; BP announced that it will lay off 10,000 employees, accounting for 15% of its total workforce.