Exxon prepares to cull US white-collar ranks by up to 10%

The Straits Times2021-06-22

HOUSTON (BLOOMBERG) - Exxon Mobil Corp is preparing to reduce headcount at its US offices by between 5 per cent and 10 per cent annually for the next three to five years by using its performance-...

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Xuanlx
2021-06-22
Xuanlx
Wah!
Shop
2021-06-22
Shop
i see
thekang
2021-06-22
thekang
Comment like thankz
- 645e274f:
  Gooooooood
Stan333
2021-06-22
Stan333
🧐🧐🧐
Alexngo
2021-06-22
Alexngo
That's no good...
- WZY999:
  👍
- Alexngo:
  🤔
areyoujerry
2021-06-22
areyoujerry
Oooooh

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While such workers are typically put on a so-called performance improvement plan, many are expected to eventually leave on their own. This year's evaluation is happening now but affected employees have not yet been notified, the people said.\n\"Our annual performance assessment process has been occurring over the last several months,\" Exxon spokesman Casey Norton said in an email. \"Where employees are not contributing to their highest ability, they may need to participate in an improvement plan. This is an annual process which has been in place for many years, and it is meant to improve performance. This process is unrelated to workforce reduction plans.\"\nThe plan is separate from Exxon's announcement last year that it will cut 14,000 jobs worldwide by 2022, and it would extend reductions well beyond that original time frame. It's a tumultuous time for Exxon, which is still grappling with the fallout from last month's annual meeting, when shareholders rebuffed top management and replaced a quarter of the company's board over climate and financial concerns.\nExxon had 72,000 employees globally at the end of last year, of which 40 per cent worked in the US, according to a company filing.\nWhite-Collar Jobs\nSeveral high-profile traders have also left in the last few weeks. While the performance-review process mostly applies to white-collar jobs such in areas such as engineering, finance and project management, there's no suggestion the trading departures were related to the review programme.\nExxon's other cost-cutting initiatives have included suspending bonuses and halting employee-contribution matches to 401k savings plans as the pandemic crushed demand for crude, saddling the company with a record annual loss.\nInternational crude prices have surged 44 per cent this year to almost US$75 a barrel, improving Exxon's financial position markedly. Still, the supermajor has some way to go to pay down debts accumulated during 2020's market collapse. A smaller and more efficient workforce is key to further improvements.\nExxon achieved US$3 billion (S$4 billion) of annual \"structural cost reductions\" in 2020 and will continue to make savings through 2023, chief executive officer Darren Woods said at the annual meeting in May.\n\"We've got additional work to continue to take advantage of the new organization and find opportunities to reduce our costs,\" Mr Woods 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