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Exxon Mobil Plans Job Cuts After Performance Evaluations

Exxon Mobil is reportedly getting ready to cut jobs in the U.S. as the oil giant focuses on a leaner and more efficient organizational structure.

Shares of the Irving, Texas, company at last check were down 3.5% to $43.60.

Between 5% and 10% of U.S.-based employees who are subject to performance evaluations could end up leaving this year after their assessments, Bloomberg reported.

The cuts are expected to be performance-based and not characterized as layoffs. Not all workers are subject to such evaluations, which typically apply to white-collar jobs such as engineering, finance and project management.

Exxon Mobil told Bloomberg there’s no specific target to reduce its head count. “We have a rigorous talent management process which routinely assesses employee performance,” the company said.

Last month, Exxon Mobil posted a surprise first-quarter loss amid a historic decline in global crude prices and said it would slash spending by $10 billion in order to protect its dividend and balance sheet.

The company said it would slash its 2020 capital spending plans by around 30%, to $23 billion.

Chief Executive Officer Darren Woods said the coronavirus “significantly impacted near-term demand, resulting in oversupplied markets and unprecedented pressure on commodity prices and margins.”

Woods told Exxon Mobil’s annual meeting that while no were layoffs planned, the company was reducing its number of contractors and is trying to become leaner.

Exxon Mobil employed 74,900 people worldwide at the end of 2019.

Chevron and BP are cutting about 16,000 workers between them. Both companies’s shares were lower Friday afternoon.