Exxon Mobil May Reduce Workforce in Africa As Demand for Fuel Declines Globally

Exxon Mobil Corporation may be shedding its workforce in Africa and across its businesses globally following the historic decline in fuel demand occasioned by the coronavirus pandemic.

The company’s businesses in Sub-Saharan Africa cuts across Nigeria, Angola, Chad, Cameroon Equatorial Guinea, Ghana, Mauritania, Mozambique and Tanzania.

A spokesman for the multinational told Reuters on Wednesday, September 1, that a voluntary lay-off programme is already ongoing in Australia.

“We have evaluations underway on a country-by-country basis to assess possible additional efficiencies to right-size our business and make it stronger for the future,” Casey Norton, based at the company’s headquarters in Irving, Texas, said.

The company had cut capital spending this year by 30% to about $23 billion after the losses it recorded in the first and second quarters.

In July, Exxon said it was not planning to cut job due to the pandemic but as it seems, current realities may have forced the company to make a U-turn on that statement.

The voluntary layoff program in Australia comes after the company completed its review on the current and future project work in the country and it is now seeking staff to resign on their own volition.

“This program will ensure the company manages through these unprecedented market conditions,” the company said.

ALSO READ: Chevron to sell off Stake in Nigerian Oil Fields

Exxon, however, did not state the percentage of its workforce it would cut in Australia but said the company is considering all employees who have shown interest in the voluntary redundancy.

On the fate of Exxon employees in other countries, Norton said it would be premature to conclude “until other study work is complete”.

The company is also said to be planning on selling its 50% stake in the Bass Strait oil and gas joint venture in southeastern Australia. Experts said the sale could fetch up to $3 billion.

It is also being speculated that Exxon could sell its Altona plant in Australia, which is the oldest refinery in the country.