U.S oil and gas giant ExxonMobil is preparing to let go between 5% and 10% of its US-based employees subject to performance review.
According to Bloomberg, Exxon’s job cuts will be characterized as performance-based and not considered layoffs.
Employees who are not subject to performance reviews will not be affected, a source reportedly told Bloomberg.
Exxon has not been immune to the drastic effects of the coronavirus pandemic and the oil price war that has destroyed demand for crude oil and eaten into profit margins for that reduced demand, and it has attempted to tighten its belt in response.
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Exxon booked a loss of $640 million in the first quarter of 2020, first in a decade after a $2.9 billion market-related charge. It also cut 2020 capex by a staggering $10 billion—a 30% cut. It has also cut its production from the Lisa field in Guyana, although that was related to the risk of excessive flaring and not the coronavirus or prices.
In addition to offloading some lower-performing employees, the oil giant is preparing to rid itself of its UK North Sea assets, for which it can no longer expect as much money thanks to the downturn.
The news comes as Minnesota and D.C. launch climate-related lawsuits against Exxon—and others–alleging that they have deceived oil consumers for years about the effects of climate change, and about their role in causing climate change.
Exxon, headquartered in Irving, Texas, employed nearly 75,000 people globally at the end of 2019.
Shares in Exxon fell on Friday by 3.43% by 4:11 pm EDT, to $43.62
