Global oil giant, ExxonMobil, has announced it will be laying off about 1,600 workers across Europe “to improve efficiency” and mitigate the impact of COVID-19 on its business operations.
This move was preceded by Exxon’s sale of its Norwegian operations for $2.5bn and the declaration of its intention to sell its North sea assets last year. The company would also be selling 15 of its oil fields, two exploration blocks and its stakes in some pipeline networks across Europe.
ExxonMobil suffered a loss over $1billion in the second quarter and 57% year-on-year loss. It is also expected that there would be a significant drop in revenue in the third quarter.
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Despite the costs cut in Europe, the oil giant reinstated its commitment in the continent, saying “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 “.
Earlier, oil exploration company, Chevron Nigeria Limited, declared that it will be laying off 25% of its workforce to reduce operating costs and improve capital efficiency.
According to the company’s General Manager, Policy, Government and Public Affairs, Esimaje Brikinn, the move “will increase efficiency and effectiveness, retain value, reduce costs and generate more revenue for the Federal Government of Nigeria”.
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As the demand for oil slump across the globe due to the impact of covid-19, the attendant disruption is expected to affect the operations of companies in the sector.
To stay afloat and remain operational, companies are devising means to cut jobs and reduce overheads.