Exxon Mobil is slashing 1,900 jobs from its U.S. workforce, mostly in Houston, as the pandemic saps demand for fuel.
The Irving, Texas, oil giant said the reductions will be both voluntary and involuntary and will largely come from its management offices in Houston. The company had about 75,000 employees worldwide at the end of 2019.
It appears the job cuts won't be an issue locally.
Stephanie Cargile, a spokeswoman for Exxon Mobil in Baton Rouge, said the reductions "are primarily in Houston, and primarily office-based."
The oil industry has been struggling all year after prices fell well below what producers need to break even. As the pandemic gripped the U.S. economy and demand for fuel plummeted, Exxon announced in March that it would cut expenses by 30%.
In a meeting with employees last week, CEO Darren Woods said the company is exceeding the spending reductions it announced in March, deferring more than $10 billion in capital expenses and cutting 15% of cash operating expenses. The company recently announced it would cut about 1,600 jobs in Europe and it began a voluntary staff reduction program in Australia. It is also evaluating potential job cuts in Canada.
Exxon is not the only oil producer reeling from plummeting demand and prices. The oil, gas and chemical industries laid off 107,000 workers between March and August, according to a recent study by Deloitte Insights.
Chevron confirmed Thursday it would slash jobs at Noble Energy, which it recently acquired, by 25%. Noble had 2,282 employees at the end of 2019, according to its annual report. Chevron, which has about 44,000 employees worldwide, is working to reduce its headcount by 10% to 15%. The San Ramon, California-based company reduced its 2020 capital spending plan by 20%, or about $4 billion, in March.
On Thursday, Royal Dutch Shell reported a better-than-expected third quarter of the year with a $177 million profit and raised its dividend, while ConocoPhillips posted a loss of $450 million after reporting a profit in the same period a year earlier.
Exxon Mobil said it will release its third-quarter financial results on Friday. Its board of directors on Thursday declared a cash dividend of 87 cents per share on the company's common stock. The fourth-quarter dividend is at the same level as the dividend paid in the third quarter. The company noted that it has shared its success with its shareholders for more than 100 years.