'We have no layoff plans,' Exxon CEO tells shareholders - Houston Chronicle

Exxon Mobil, one of the largest employers in the Houston area, said Wednesday it has no immediate plans to lay off workers in response to the coronavirus-driven oil bust.

The Irving-based oil and gas producer plans to cut operating expenses by 15 percent this year after oil prices plunged along with demand for petroleum products during the global pandemic. However, CEO Darren Woods told shareholders at the company’s annual meeting Wednesday that those cost reductions do not include any layoffs of Exxon employees. The oil major employs nearly 16,000 employees locally, according to a Houston Chronicle survey.

“As you all know, we work hard to avoid layoffs,” Woods said. “Today, we have no layoff plans.”

Exxon, which again defeated shareholder resolutions Wednesday calling for greater accountability and transparency over corporate governance, climate action plans and political contributions, has the financial strength, analysts said, to weather economic downturns such as the coronavirus crisis.

RELATED: Exxon, Chevron face shareholders as oil faces uncertain future

Still, the pandemic and subsequent oil bust have forced Exxon to slash capital spending on new projects by 30 percent and shut down rigs, particularly in the oil-rich Permian Basin. The company is expected to cut U.S. output by about 74,000 barrels per day in May and June, according to Rystad Energy, a Norwegian research firm.

Although the company has no immediate plans to lay off employees, Woods acknowledged the company has cut oil-field service company workers and independent contractors working on Exxon projects.

“Work has dried up,” Woods said. “Our need for those (oilfield services firms and contractors) have been reduced.”

Woods, however, did not rule out layoffs in the “medium- to long-term horizon” as the company continues to look for ways to streamline its business and organization.

“We continue to look for ways to become more efficient and run our business more effectively,” Woods said.

Exxon Mobil faced protests from environmental activists and some of its own investors at the annual meeting, but the it again pushed back proposals that would have changed the company’s corporate governance, climate change accountability and transparency over political donations.

Exxon faced shareholder resolutions that would have split the roles of its chairman and chief executive Darren Woods, and others that would have required Exxon to set carbon emission reduction goals and disclose its indirect contributions to political campaigns. Those measures were rejected by shareholders, who also approved the board’s slate of director candidates and executive compensation plans.

Some shareholders are pushing for reforms as Exxon and its U.S. rival Chevron face mounting criticism for lagging European counterparts on climate change. BP and Shell have set goals of net-zero greenhouse emissions from their operations and products by 2050.

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https://www.houstonchronicle.com/business/energy/article/Exxon-Mobil-CEO-says-no-layoffs-planned-at-this-15298152.php

2020-05-28 01:58:27Z
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