Exxon Mobil Corporation (XOM - Free Report) is considering reducing headcount across its worldwide operations, per Reuters. The report also confirms the integrated energy major’s voluntary redundancy programme in Australia.
Although the company hasn’t announced the percentage of workforce it is going to lay off, the energy major will continue its lay-off program worldwide into 2021, the report added. Notably, outside the United States, Australia is the first country where the company has reviewed its business.
According to the report, the integrated firm is evaluating its businesses across the globe to make its operations more efficient. Importantly, ExxonMobil’s cost-cutting initiative is not a surprise since the coronavirus pandemic has dented global fuel demand, leading to a plunge in oil price year to date.
Recently, oil biggie ExxonMobil was ousted from the Dow Jones Industrial Average after more than 90 years. Thus, per S&P Dow Jones Indices analysis, the blue-chip benchmark will now have Chevron Corporation (CVX - Free Report) as the only energy name to portray 2.1% of the price-weighted index.
Notably, with a market cap of more than $415 billion, ExxonMobil was the largest U.S. company in 2013. Over the years, ExxonMobil’s market value has plunged below $170 billion and, hence, the U.S. economy is no longer driven by energy majors but instead by technology giants like Apple Inc. (AAPL - Free Report) , Amazon.com, Inc. and Microsoft Corporation. As a result, with the replacement of ExxonMobil by business software company salesforce.com Inc. (CRM - Free Report) , the blue-chip index will get more tuned with the current American economy.
Based in Irving, TX, ExxonMobil currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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