Exxon To Cut 1,900 US Jobs As Oil Industry Struggles

The oil industry was already struggling before the pandemic struck, with a weakened global economy decreasing demand for energy and producers flooding the market with cheap fuel. Then prices fell well below what producers need to break even. A barrel of the U.S. benchmark crude was selling for about $35 Thursday, and most producers need at least $50 a barrel to make ends meet. As the pandemic gripped the U.S. economy and demand for fuel plummeted, Exxon announced in March that it would cut expenses by 30%.

In a meeting with employees last week, Exxon CEO Darren Woods said the company is exceeding the spending reductions it announced in March, deferring more than $10 billion in capital expenses and cutting 15% of cash operating expenses. The company recently announced it would cut about 1,600 jobs in Europe and it began a voluntary staff reduction program in Australia. It is also evaluating potential job cuts in Canada.