It is set to take place by the end of 2027
Natural gas company Exxon Mobil Corporation has announced that it will be cutting down on its workforce at St. John’s in Newfoundland and Labrador, according to Financial Post.
As part of its global restructuring plan, the firm is set to issue layoffs on 20% of its workforce by the end of 2027, according to Shelley Sullivan, a spokeswoman for Exxon Mobil.
While the exact number of employees that will be affected were not confirmed, around 50 positions is estimated to be cut as company records revealed that the St. John’s office employed around 250 workers.
Sullivan added that the layoffs were not expected to have any impact on the firm’s offshore workforce. Meanwhile, Unifor Local 2121 president Robert Coady revealed that offshore jobs would be spared for the layoffs.
Unifor Local 2121 represented more than 450 workers at Hibernia, which was one of the two major offshore oil projects off the coast of Newfoundland and Labrador that Exxon Mobil was the largest equity owner of.
Coady said that Hibernia Management and Development Co. Ltd. President Duncan Fitzpatrick confirmed this to him over a phone conversation.
“He said it’s strictly management. He said there’s no effect on offshore jobs,” said Coady.
He also said that the operations of Hibernia cannot afford further reductions.
“We cannot continue to operate if we reduce. That gives us some reassurance,” said Coady, adding that he was optimistic that there would be no additional cuts but can see that the situation can still change.
Exxon Mobil recently announced that it would lay off 2,000 employees as part of its plans for long-term restructuring. This followed the announcement of Exxon Mobil majority-owned Imperial Oil Ltd., where they would cut down on its workforce by 20%.
This number was reportedly 3 to 4% of Exxon Mobil’s global workforce, according to Bloomberg News, citing an internal company memo. Meanwhile, the company said that the layoffs by Imperial Oil counted for half of the reductions of Exxon Mobil worldwide.
Alberta Premier Danielle Smith had expressed her disappointment over Imperial Oil’s plan, shifting the blame to Ottawa, according to Calgary Journal.
Sullivan stated that the restructuring will help Exxon Mobil to “draw more fully on global technical and professional services and technology across locations.”
