Exxon Mobil Corp. reportedly plans to reduce its U.S. office workforce by up to 10% a year for the next three to five years.
Bloomberg News on Monday reported that the oil giant will trim between 5% and 10% of its lowest-performing white-collar workers in the coming years, with job reductions based on performance evaluations.
An Exxon Mobil spokesperson told Bloomberg that the culling is part of an annual process that will not be characterized as layoffs, and is “unrelated to workforce reduction plans.” Last year, the company announced it planned to eliminate as many as 14,000 jobs worldwide as part of cost-cutting measures, as closures related to the COVID-19 pandemic pressured global oil prices.
As of the end of 2020, Exxon employed about 72,000 workers worldwide, with nearly 30,000 of those based in the U.S.
Exxon instituted a number of other cost-cutting moves, such as suspending bonuses and halting matching 401(k) contributions, as it reported a $20 billion net loss last year. Earlier this month, the company announced the election of three new directors who had been nominated by an activist-investor hedge fund in a bid to reverse the company’s losses and build a sustainable future.
Oil futures BRN00, have rallied this year, with prices rising Monday to their highest levels since October 2018. Exxon shares XOM, +3.63% are up 52% year to date, and up 35% over the past 12 months.
Add Comment