Last month, ExxonMobil’s Chief Executive Officer and President, Darren Woods, had boasted that the oil giant is one of the few that has not resorted to cutting staff just to save on funds during the COVID-19 pandemic. With the recovery of oil demand moving slower than a snail’s pace, the oil giant now faces the grim reality of trimming staff across its US offices .
Spilling the proverbial beans on this matter was international news agency Bloomberg. (https://www.bnnbloomberg.ca/exxon-prepares-to-make-job-cuts-across-oil-giant-s-u-s-offices-1.1457020) Guyana Standard understands that the cuts are expected to be performance based.
As a result of the depressing oil environment, Exxon had announced that it had suffered an estimated first quarter 2020 loss of US$610 million, or US$0.14 per share. In response to market conditions, ExxonMobil had said that it was reducing 2020 capital spending by 30 percent and cash operating expenses by 15 percent. Capital Expenditure is now expected to be approximately US$23 billion for the year, down from the previously announced guidance of $33 billion.
Woods was keen to note that while the company is managing through these challenging times, it is not losing sight of the long-term fundamentals that drive business. In this regard, he had said that economic activity will return, and populations and standards of living will increase, which will in turn drive demand for products and a recovery of the industry.