Oil giant Exxon announces major write-offs and job cuts

Oil giant ExxonMobil on Monday said it would begin major write-offs and cut thousands of jobs as part of a savings programme, to help weather the ongoing effects of the coronavirus pandemic.

By the end of 2021, the global workforce will be reduced by 15 per cent, the company announced after the US stock market closed.

At the end of 2019, Exxon had around 88,000 employees, including freelancers, which means that well over 10,000 jobs are likely to be cut.

In the fourth quarter, between $17 billion and $20 billion will be written off on natural gas plants.

Investments in equipment and exploration and production projects are also to be reduced and in 2021 will be at the lowest level in 15 years.

Exxon is suffering greatly from the consequences of the pandemic, which has severely dampened global demand for oil and gas.

The company, which was making billions in quarterly profits before the virus hit, has recently suffered its third consecutive quarter of figures in the deep red and has been drastically cutting back its spending for some time now.

The share price initially increased slightly after the announced austerity programme, but has already fallen by more than 45 per cent since the beginning of the year.

Source: GNA