Exxon Mobil Corp., a major U.S. oil company, announced on Tuesday (3/2) that it has decided to cut its workforce in Singapore by 7 percent. The oil company stated an unprecedented market situation is continuing due to the spread of COVID-19.
Exxon Mobil said about 300 jobs will be affected by the job cuts by the end of the year. Exxon Mobil has more than 4,000 employees at its Singapore plant. The plant has a production capacity of about 592,000 barrels a day.
“This is a difficult but necessary step to improve our competitiveness and strengthen our business foundation for future success,” said Geraldine Chin, chairman of Exxon Mobil Asia Pacific.
Exxon posted a net loss of $22.4 billion last year, the first annual deficit in 40 years. The company was struggling with a sharp drop in demand due to the COVID-19 crisis. As well as the world’s shift to eco-friendly energy such as electricity.
In the fourth quarter of last year alone, the company recorded its worst quarterly performance slump. It reported a net loss of $20 billion due to the amortization of $19.3 billion worth of assets.
Exxon Mobil and other oil companies have been going through a test for survival as all economic activities. This includes trade and production, both experiencing paralyze due to prolonged containment measures due to the global pandemic.
Exxon Mobil has been cutting costs by cutting 14,000 jobs as part of its self-rescue plan. It is also said to have discussed merging with Chevron, another oil giant. Chevron has also been suffering from losses for the past three consecutive quarters.
This is in contrast with EV makers such as Tesla which stocks’ price have been soaring in the past year.
