The move to reduce staffing levels across a number of European affiliates by the end of next year forms part of the company's extensive global review
ExxonMobil is planning to layoff up to 1,600 jobs by the end of 2021, as part of its efforts to reduce costs and improve efficiency across its European operations.
The move to reduce staffing levels across a number of European affiliates by the end of next year forms part of ExxonMobil’s extensive global review, which was outlined during the company’s second-quarter earnings call.
ExxonMobil said that the country-specific impacts will be based on its local business footprint and market conditions.
In a press statement, ExxonMobil: “Europe remains an important market for ExxonMobil, as evidenced by recent major investments.
“However, significant actions are needed at this time to improve cost competitiveness and ensure the company manages through these unprecedented market conditions.”
Proposed changes subject to consultation processes
Subject to local information and consultation processes, the proposed changes are the result of the insight gained through reorganisations and work-process changes to help improve efficiency and reduce costs.
The firm noted that the demand for its products has been impacted by the Covid-19, thus increasing the urgency of the efficiency work.
Recently, ExxonMobil and Hess announced the final investment decision (FID) for the $9bn Payara development project, offshore Guyana, following the Guyanese government’s approval.
The project involves the development of the Payara field in the Stabroek Block through the drilling of up to 41 wells at 10 drill centres. Of these, 20 will be production wells and the remaining 21 will be injection wells.
First oil from the Payara development project is targeted for 2024. Production from the field is planned to be carried out using the Prosperity floating production, storage and offloading vessel (FPSO).