ExxonMobil to lay off more than 700 workers in Houston

US-based oil major ExxonMobil is set to reduce its workforce in the Houston area as part of a larger plan that seeks to reduce costs by cutting its global headcount.

According to a notice sent by the company to the Texas Workforce Commission, the move will make more than 700 workers redundant in the Houston area.

The layoff date is 2 February, Reuters reported citing the notice.

It forms part of the previously announced 1,900 job cuts through voluntary and involuntary programmes, primarily from the Houston-area campus.

At the time of this announcement, the company said: “Employees who are separated through involuntary programmes will be provided with support, including severance and outplacement services.”

The company said that it aims to trim its global headcount by 15%, a move that will involve cutting around 14,000 jobs.

At the end of 2019, ExxonMobil had around 88,300 workers, including 13,300 contractors.

Several oil and gas companies have cut their budget and expenses due to the fall in global oil prices following the Covid-19 pandemic.

Last month, the company reduced the value of its natural gas properties by $17bn to $20bn. It also reduced its project expenses in 2021 to the lowest level in 15 years.

ExxonMobil announced plans to reduce up to 300 positions in Canada by the end of next year in a bid to improve long-term competitiveness and reduce costs.

It is also trimming its workforce in Europe.