“Employees who participate in the program will be provided with company support, including outplacement services. “This program will ensure the company manages through these unprecedented market conditions”, the company stated.
The company did not say what percentage of its workforce it was seeking to cut, but the statement claimed that the voluntary redundancy program was available to all employees who expressed an interest.
ExxonMobil is the latest oil major to embark on axing jobs spurred by a historic collapse in fuel demand because of the coronavirus pandemic. BP, for example, announced in early June that it would be reducing its global workforce by 10,000 people this year. Other companies which cut its workforce include Halliburton and SembMarine amongst others.
The company has already slashed its capex spending by $10 billion to around $23 billion. Exxon also stated in August that it planned both capex and opex cuts to defend its dividend after reporting losses in the 1st and 2nd quarters – 1st back-to-back quarterly loss in over 3.5 decades.
Also in Australia, ExxonMobil is looking to sell its 50 % stake in the Bass Strait oil and gas joint venture which could earn them up to $3 billion.
Apart from its stake in Bass Strait, analysts have speculated that ExxonMobil could also sell or close its Altona plant in Melbourne, Australia’s oldest refinery.
