ExxonMobil is preparing to let go between 5% and 10% of its US-based employees subject to performance reviewed, anonymous sources told BNN Bloomberg.
According to the source, the cuts will be characterized as performance-based, and not considered layoffs, technically speaking. Employees who are not subject to performance reviews will not be affected, the source said.
The US largest oil company Exxon told Bloomberg in a statement that there was no specific reduction target.
The coronavirus pandemic has drastic effects on the company and the oil price war that has destroyed demand for crude oil and eaten into profit margins for that reduced demand.
According to the Oil Price, Exxon In Q1 swung to a $640 million loss—its first loss in a decade after a $2.9 billion market-related charge. It also cut 2020 Capex by a staggering $10 billion—a 30% cut. It has also cut its production from the Liza field in Guyana, although that was related to the risk of excessive flaring and not the coronavirus or prices.
In addition to offloading some lower-performing employees, the oil giant is preparing to rid itself of its UK North Sea assets, for which it can no longer expect as much money thanks to the downturn.