By Florence Tan and Shruti Sonal
SINGAPORE (Reuters) – Exxon Mobil Corps plans to cut its workforce in Singapore, home of its largest oil refinery and petrochemical complex, by about 7% amid “unprecedented market conditions” due to the COVID-19 pandemic. it said Wednesday.
About 300 jobs out of 4,000 current jobs will be affected by the end of 2021, the company said in a statement.
The layoffs in Singapore come weeks after Exxon announced its plan to close its 72-year-old Altona refinery in Australia and switch to an import terminal. The leading U.S. oil producer, once America’s most valuable company, posted a historic annual loss for 2020 after the coronavirus pandemic reduced energy demand.
Exxon’s announcement also follows the European Royal Shell’s decision in November to reduce 500 staff members and halve its crude processing capacity in Singapore as part of a global strategy to reduce carbon emissions.
Exxon Mobil’s Singapore complex has the capacity to refine approximately 592,000 barrels of oil per day and contains its largest integrated petrochemical production plant.
The city-state will remain a strategic place for the company, he said.
“This is a difficult but necessary step to improve our company’s competitiveness and strengthen the foundation of our business for future success,” said Geraldine Chin, Chairman and CEO, ExxonMobil Asia Pacific Pte Ltd.
Last year, Exxon said it was committed to a billion-dollar expansion in the Singapore complex amid an ongoing review of its projects worldwide.
(Reporting by Shruti Sonal in Bengaluru and Florence Tan in Singapore; Edited by Himani Sarkar and Christian Schmollinger)