Energy giant Exxon Mobil this week said that it could axe more than a thousand jobs in its European affiliates. The company further said that country-specific layoffs will depend on how Exxon’s business footprint fare and market conditions.
Layoffs in Europe
On Monday, Exxon Mobil said that they could let go of an estimated 1,600 employees. This decision would impact its affiliates in Europe by the end of next year. The announcement comes amid a struggling oil and gas industry in the health crisis.
Exxon cuts 1,600 jobs across Europehttps://t.co/RgipbxtZRa
— The National (@TheNationalUAE) October 6, 2020
Exxon Mobil maintains that the company still considers Europe an important market. But, the company said it needs to improve cost competitiveness. Also, Exxon wants to ensure that the “company manages through these unprecedented market conditions,” the press release reads.
Struggling Oil Industry
Exxon has previously said there will be voluntary layoffs among its Australian affiliates, Reuters reports. Actually, several other energy behemoths have struggled in this pandemic, with depressed oil prices and lower demand for their products. Several other energy titans had announced job cuts, like BP and Shell.
Last week, Royal Dutch Shell announced that it will lay off as much as 9,000 jobs, equivalent to ten percent of its employees worldwide, through 2022. The oil giant said the decision comes to reduce costs and streamlines its organizational structure. Similarly, BP said it plans about 10,000 layoffs of its 70,000 workers worldwide. It comes as the company also plans to shift its focus towards cleaner energy.
In addition, recently, investors favor companies that provide cleaner energy. Last week, wind and solar energy producer NextEra briefly surpassed energy king Exxon Mobil in terms of market value. Although it was brief as Exxon regains its top spot, it highlights how renewable energy has accelerated in growth over the past months.
Exxon has also faced several challenges in the past months. To begin, the energy behemoth’s market value dropped by about half this year. It entered the year worth $300 million, and now down to $140 billion. Moreover, the Dow Jones Industrial Average has kicked the company out of its list last August. Exxon has been a member of the index for more than nine decades. The Dow replaced Exxon with tech company Salesforce. Furthermore, Norwegian asset management Storebrand also divested its Exxon stocks. The private money manager reasoned out its new green policy. Storebrand explained that it plans to stay away from firms with over 5 percent of revenues dependent on coal or oil sands.