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Oct. 29, 2020, 2:01 p.m. EDT

Exxon to cut 1,900 U.S. jobs as pandemic gives new urgency to cost-cutting

BY Claudia Assis

Exxon Mobil Corp. on Thursday said it plans to cut its U.S. workforce, seeking to reduce costs to fend off lower demand for its products during the pandemic.

Exxon (NYS:XOM) said that 1,900 employees will be affected, mostly at its management offices in Houston, through “voluntary and involuntary programs.”

“The workforce reductions are the result of ongoing reorganizations and work-process changes that have been made over the past several years to improve efficiency and reduce costs,” Exxon said in a statement.

Related: Here’s what Exxon’s removal from the Dow says about the energy sector

The COVID-19 pandemic, however, and its impact on demand on Exxon’s products “has increased the urgency of the ongoing efficiency work.”

Exxon did not detail the job-cut programs beyond saying that laid-off employees “will be provided with support, including severance and outplacement services.”

Exxon earlier this month announced workforce cuts in Europe , not immediately detailing in which countries the layoffs would occur. In August, the company was removed from the Dow Jones Industrial Average to make room for Salesforce.com Inc.

tended their losses Tuesday, a day after the energy integrated company was removed from the Dow Jones Industrial Average (DOW:DJIA) to make room for Salesforce.com Inc. (NYS:CRM)

Shares of Exxon rose no Thursday and were among the best gainers among energy companies on the S&P 500 index. (S&P:SPX) The stock has lost 53% so far this year, contrasting with gains of around 2% for the S&P in the same period.

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