On Thursday, ExxonMobil said it would cut around 1,900 jobs in the United States in its latest effort to cut costs and protect the balance sheet amid low oil prices and weak global oil demand due to pandemic.
“As part of an expanded global review released earlier this year, the company plans to reduce staffing in the United States, primarily at its management offices in Houston, Texas. The company predicts around 1,900 employees will be affected through voluntary and involuntary programs, ”Exxon said in a statement on Thursday, a day before the company is expected to release earnings. 3rd quarter and the day after the first quarterly dividend hold since 1982.
Exxon has said it will cut 1,600 jobs in Europe as part of an effort to curb costs.
Announcing the cuts in the US, the executive director today said, “These actions will improve a company’s long-term cost competitiveness and ensure it manages through market conditions. Current school unprecedented. The impact of COVID-19 on demand for ExxonMobil products has increased the urgency of on-going efficient work.
Following the press release announcing the job cuts, shares of Exxon (NYSE: XOM) rose 2.57% at 12:21 EDT, despite the same 4% drop in oil prices.
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On Wednesday, ExxonMobil said it was keeping its fourth quarter quarterly dividend unchanged at $ 0.87 per share – for the first time in 38 years the company hasn’t increased its dividend in more than 100 years.
On Friday, Exxon is expected to report a third consecutive loss in upstream business this year, as falling oil demand continues to hurt oil companies’ profits.
For the second quarter, at the end of July, Exxon reported a second consecutive quarterly loss, the heaviest loss for an American super cargo ship in modern history.
By Tsvetana Paraskova for Oilprice.com
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