Exxon Mobil plans to lay off 723 Houston-area employees early next year in response to the historic oil downturn caused by the coronavirus pandemic.
The nation’s largest oil company told the Texas Workforce Commission this month that layoffs will take place in February at its offices in Spring and The Woodlands. The layoffs, announced in October, are part of Exxon’s plans to cut 15 percent of its global workforce, including 1,900 U.S. employees, to reduce costs during the downturn. The Irving-based oil major employs about 12,000 in the Houston area.
“These actions will improve the company’s long-term cost competitiveness and ensure the company manages through the current unprecedented market conditions,” Exxon said in October. “The impact of COVID-19 on the demand for ExxonMobil’s products has increased the urgency of the ongoing efficiency work.”
Exxon in October did not disclose exactly how many Houston-area employees would be affected, saying only that the majority of U.S. layoffs will take place among local management workers. The company’s layoff notices to Texas’ workforce agency outlines the depth of Exxon’s labor reduction in the Houston area.
LAYOFFS: Exxon to lay off 1,900 US employees, mostly in Houston
Exxon has been cutting budgets in response to the worst oil crash in decades. The company slashed 15 percent of its operating expenses, stopped contributing to employee retirement accounts and last week announced plans to further cut capital spending over the next five years to the lowest level in more than a decade.
Most of Exxon’s rivals already announced mass layoffs in response to the oil bust. Chevron in May announced plans to lay off 6,000 workers by the end of the year, followed by BP the following month with layoffs of 10,000 by the end of the year. Shell in September said it plans to lay off as many as 9,000 employees by the end of 2022.
Since the pandemic broke out nationally in March, oil and gas companies have laid off nearly 60,000 drilling-related workers in Texas, including more than 12,500 in the Houston region, according to the Texas Alliance of Energy Producers.
Texas’ oil and gas industry has lost nearly 30 percent of its workforce since the coronavirus pandemic plunged crude demand and prices, forcing energy companies to cut spending on oil and natural gas projects. There are an estimated 149,800 oil and gas employees in the Lone Star State as of October, the trade group said.
https://www.houstonchronicle.com/business/energy/article/Exxon-Mobil-to-lay-off-723-Houston-area-employees-15795122.php
2020-12-11 19:28:00Z
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