Oil major ExxonMobil reportedly considers global job cuts

American multinational oil and gas major ExxonMobil is reportedly assessing possible job cuts across its global operations.

The latest move comes after the company announced voluntary layoffs in Australia as part of cost-cutting due to a historic crash in fuel demand as a result of the Covid-19 pandemic, Reuters reported.

The company’s job cuts will continue until 2021.

It is the latest oil major to cut jobs following a collapse in fuel prices.

ExxonMobil spokesman Casey Norton was quoted by the news agency as stating: “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 did not disclose about the percentage of staff it was seeking to reduce but said that, in Australia, it would consider laying off all the employees who expressed an interest in ‘voluntary redundancy’.

Norton added: “Until other study work is complete, it would be premature to draw conclusions for other countries”.

According to Reuters, the layoffs in Australia also come as Exxon is exploring options to sell its 50% interest in the Bass Strait oil and gas joint venture (JV). This sale is expected to generate around $3bn for the company.

Last month, the company announced that it lost $1.1bn during the second quarter of this year due to a global oversupply and coronavirus-related demand impacts.

The company brought in $32.6bn in revenue during Q2, which is less than half of the $69bn Exxon brought during the same time last year (Q2-2019).

In July, ExxonMobil renewed its partnership with Princeton University’s Andlinger Center for Energy and the Environment. Under this strategic collaboration, the partners will develop low-emission technologies and solutions, such as carbon capture and power generation.

In April, ExxonMobil said it is field testing eight detection technologies to reduce methane gas emissions.