US oil giant ExxonMobil has joined Chevron Nigeria Limited (CNL), operator of the joint venture between the Nigerian National Petroleum Corporation (NNPC) to announce job cuts.
Exxon said Monday it plans to reduce its European workforce by up to 1,600 across the company’s affiliates by the end of 2021 as part of its global review.
This is as Chevron Nigeria Limited (CNL), another oil giant Friday had said it was disengaging 25 per cent of its total staffers in a decision it said was to aid its long term survival, following the recent downturn in the oil industry.
ExxonMobil said country-specific cuts will depend on the oil major’s local business footprint and market conditions, after the COVID-19 pandemic hammered demand for its products and crude prices tanked.
Oil majors are axing jobs, lowering spending and curbing dividends in order to save cash amid a dismal outlook over energy prices which are expected to remain lackluster for years.
Last month, Exxon announced voluntary layoffs in Australia and said that job cuts will continue globally into 2021.
In a similar development, Chevron Nigeria Limited (CNL), operator of the joint venture between the Nigerian National Petroleum Corporation (NNPC) and CNL together with its affiliates, had confirmed that it was reviewing its manpower requirements in the light of the changing business environment.
The International Oil Company (IOC), said it was disengaging 25 per cent of its total staff in a decision it said was to aid its long term survival, following the recent downturn in the oil industry.
The company added that it was continuing to evaluate opportunities to improve capital efficiency and reduce operating costs, stressing that in the process, the company will be streamlining its workforce and improving service delivery and overall performance at all levels.
CNL’s General Manager Policy, Government and Public Affairs, Mr Esimaje Brikinn, in a statement, explained that the aim is to have a business that is competitive and have an appropriately sized organisation with improved processes.
He noted that the move will increase efficiency and effectiveness, retain value, reduce cost, and generate more revenue for the federal government of Nigeria.
According to him, the new organisational structures will, unfortunately, require approximately 25 percent reduction in the work force across the various levels of the organisation.
“It is important to note that all our employees will retain their employment until the reorganisation process is completed.
“CNL supports the federal government in its objectives and efforts to build a prosperous Nigeria. In the area of employment generation, the company has several social investments which are helping to provide employment for thousands of Nigerians,” the oil multinational stated.
Brikinn clarified that there were no plans to migrate Nigerian jobs outside the country.
”We have prospects for our company in Nigeria; however, we must make the necessary adjustments in light of the prevailing business climate; and we need everyone’s support to get through these tough times stronger, more efficient and more profitable, in order to sustain the business,” CNL noted.
The statement stated further that CNL was in alignment with both its Joint Venture partners, the NNPC, and the Department of Petroleum Resources (DPR) in the entire process.
“We are actively engaging our workforce to ensure they understand why this is being done. We will continue to consistently engage all relevant stakeholders, including the leadership of the employee unions as we continue this process of business optimisation.
“At CNL, the welfare and safety of our workforce is one of our highest priorities. Making changes to the organisation is never easy for anyone that will be impacted.
“But it is necessary to improve our ability to remain competitive in Nigeria. Reducing the cost and improving the efficiency of our operations is critical to generating more revenues for the federal government of Nigeria,” it added.