ExxonMobil Cuts 7% of Singapore Workforce Amid COVID Shock

[Asia Economy Reporter Yujin Cho] ExxonMobil, a major U.S. oil company, announced on the 2nd (local time) that it will reduce its Singapore workforce by 7% due to the unprecedented market conditions caused by the spread of COVID-19.

ExxonMobil stated that about 300 jobs will be affected by this workforce reduction by the end of this year. ExxonMobil has more than 4,000 employees at its Singapore plant, which has a production capacity of approximately 592,000 barrels per day.

Geraldene Chin, President of ExxonMobil Asia Pacific, said, "This is a difficult but necessary step to enhance our company's competitiveness and strengthen the business foundation for future success."

Struggling with a sharp decline in demand due to the COVID-19 crisis, ExxonMobil recorded a net loss of $22.4 billion (about 25 trillion KRW) last year, marking its first annual loss in 40 years.

In the fourth quarter of last year alone, it recorded the worst quarterly performance with a net loss of $20 billion due to asset write-downs amounting to $19.3 billion (about 21 trillion KRW).

As lockdown measures prolonged due to COVID-19, paralyzing all economic activities including trade and production, oil companies including ExxonMobil faced a survival test.

As part of its self-help measures, ExxonMobil has continued cost-cutting efforts, including reducing 14,000 jobs. It is also reported to have discussed a merger with another major oil company, Chevron, which has also been struggling with losses for three consecutive quarters recently.