Exxon slashes 1,900 jobs, many at corporate HQ
Fears of coronavirus second wave could destroy oil: Expert
Senior market analyst Phil Flynn argues hurricanes and fears over a second wave of coronavirus cases are hurting the outlook for oil demand.
Exxon Mobil plans to cut 1,900 U.S. workers as the oil giant navigates a sharp drop in demand caused by the COVID-19 pandemic, which has curtailed both office commutes and vacation travel.
Continue Reading Below
The separations, many at the company's Irving, Texas, headquarters, are both voluntary and involuntary, Exxon said in a statement on Thursday. Efforts to streamline operations, which many of its rivals are also doing, has taken on greater urgency after the coronavirus spurred the worst downturn since the Great Depression, hammering oil prices.
"These actions will improve the company’s long-term cost competitiveness and ensure the company manages through the current unprecedented market conditions," executives said in the statement.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Exxon, which is slated to report earnings for the three months through September on Friday, is expected to lose 25 cents per share, marking a third straight quarterly loss.
|XOM||EXXON MOBIL CORPORATION||32.54||+0.97||+3.08%|
Revenue is likely to fall 29% year-over-year to $46.01 billion, according to estimates from Wall Street analysts.
EXXONMOBIL CEO WARNS OF JOB CUTS
Exxon CEO Darren Woods had warned last week that more job cuts were coming for employees in both the U.S. and Canada.
While the company has surpassed its targeted cuts, Woods said the COVID-19 pandemic and lockdowns intended to contain it have slashed oil demand by about 20%, five times the decline during the 2008 financial crisis.
This story is developing. Check back for updates.
Source: Read Full Article