American multinational oil and gas corporation ExxonMobil on Wednesday (3 Mar) said it will cut about 300 jobs in Singapore — about 7 per cent of its workforce in the city-state — by the end of the year due to “unprecedented market conditions” resulting from the COVID-19 pandemic.
The oil major employs more than 4,000 employees in Singapore, which houses its largest refinery with a capacity of about 592,000 barrels a day.
In a statement today, ExxonMobil said that the “unprecedented market conditions” brought by the COVID-19 pandemic “accelerated ongoing reorganization and work-process changes that will improve the company’s long-term cost competitiveness and ability to manage through near-term challenges”.
Nevertheless, it stated that Singapore will remain a strategic location for the US-based company.
ExxonMobil Asia Pacific chairman and managing director Geraldine Chin noted that the company will provide “transitional support” to all affected employees and focus on “getting through this challenging time”.
“This is a difficult but necessary step to improve our company’s competitiveness and strengthen the foundation of our business for future success,” said Ms Chin.
In terms of the company’s compensation package, an ExxonMobil spokesperson told CNA that the company will provide counselling and outplacement services to all affected staff.
It was said that ExxonMobil engaged the Manpower Ministry and union leaders ahead of the announcement.
“We remain focused on safe operations and reliably supplying the customers who rely on our products,” said the spokesperson.
ExxonMobil recorded a US$22.4 billion loss last year, on the writedown and losses in oil production and refining, reversing over US$14 billion of profit in the previous year.