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Exxon (XOM) Plans to Eliminate US Employees to Reduce Expenses
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Exxon Mobil Corporation (XOM - Free Report) plans to downsize 5-10% of its workforce at the United States-based offices per year in the next three to five years, per Bloomberg.
The decision to downsize its workforce was made as the company reported significant operating losses due to the global economic recession caused by the pandemic.
Per Bloomberg, the plan will be executed through its performance-evaluation system to eliminate unproductive white-collar workers. The system will target the lowest-rated employees as compared to peers and, therefore, will not be classified as layoffs. Notably, the process is intended to improve performance and is not related to any workforce-reduction plans.
It should be noted that the performance-evaluation process will mainly affect white-collar jobs, which are involved in the fields of engineering, finance and project management. The process puts the identified low-rated workers on a performance improvement plan, after which many would leave on their own if they fail to improve. Although the company’s 2021 performance evaluation process has been running for the past few months, the affected employees have not yet been notified.
Beside this, the company suspended employee bonuses and stopped employee-contribution matches to 401k savings plans to reduce expenses. As a result, the company obtained $3 billion of annual structural cost reductions in 2020. However, the oil giant needs to continue cutting costs and reduce workforce to clear its remaining debt.
Per a company filing, Exxon had 72,000 employees at the end of last year, of which 40% worked in the United States. Importantly, the company’s evaluation plan is not related to its announcement last year to lay off 14,000 workers globally by 2022, which included deep white-collar staff in the United States.
Company Profile & Price Performance
Headquartered in Irving, TX, Exxon is one of the leading integrated energy companies in the world.
Shares of the company have outperformed the industry in the past six months. Its stock has gained 54.4% compared with the industry’s 30.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
The company currently sports a Zack Rank #1 (Strong Buy).
Over the past 60 days, the Zacks Consensus Estimate for Extraction’s 2021 earnings has been raised by 118.9%.
Schlumberger’s earnings for 2021 are expected to increase 47.8% year over year.
Repsol’s earnings for 2021 are expected to increase 12.4% year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Exxon (XOM) Plans to Eliminate US Employees to Reduce Expenses
Exxon Mobil Corporation (XOM - Free Report) plans to downsize 5-10% of its workforce at the United States-based offices per year in the next three to five years, per Bloomberg.
The decision to downsize its workforce was made as the company reported significant operating losses due to the global economic recession caused by the pandemic.
Per Bloomberg, the plan will be executed through its performance-evaluation system to eliminate unproductive white-collar workers. The system will target the lowest-rated employees as compared to peers and, therefore, will not be classified as layoffs. Notably, the process is intended to improve performance and is not related to any workforce-reduction plans.
It should be noted that the performance-evaluation process will mainly affect white-collar jobs, which are involved in the fields of engineering, finance and project management. The process puts the identified low-rated workers on a performance improvement plan, after which many would leave on their own if they fail to improve. Although the company’s 2021 performance evaluation process has been running for the past few months, the affected employees have not yet been notified.
Beside this, the company suspended employee bonuses and stopped employee-contribution matches to 401k savings plans to reduce expenses. As a result, the company obtained $3 billion of annual structural cost reductions in 2020. However, the oil giant needs to continue cutting costs and reduce workforce to clear its remaining debt.
Per a company filing, Exxon had 72,000 employees at the end of last year, of which 40% worked in the United States. Importantly, the company’s evaluation plan is not related to its announcement last year to lay off 14,000 workers globally by 2022, which included deep white-collar staff in the United States.
Company Profile & Price Performance
Headquartered in Irving, TX, Exxon is one of the leading integrated energy companies in the world.
Shares of the company have outperformed the industry in the past six months. Its stock has gained 54.4% compared with the industry’s 30.3% growth.
Zacks Rank & Other Stocks to Consider
The company currently sports a Zack Rank #1 (Strong Buy).
Some other top-ranked players in the energy space are Extraction Oil & Gas, Inc. , Schlumberger Limited (SLB - Free Report) and Repsol SA (REPYY - Free Report) , each currently flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, the Zacks Consensus Estimate for Extraction’s 2021 earnings has been raised by 118.9%.
Schlumberger’s earnings for 2021 are expected to increase 47.8% year over year.
Repsol’s earnings for 2021 are expected to increase 12.4% year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>