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ExxonMobil will cut jobs in Singapore as the world’s major oil companies decline

Singapore: Exxon Mobil Corp expects to cancel around 300 jobs at the Asian Oil Trade Center in Singapore by the end of 2021, as part of a global cutback announced last year.

The company said in a statement that the planned layoffs are equivalent to about 7% of its 4,000-strong workforce in the city state. This comes on the heels of similar announcements in recent months from oil giants Royal Dutch Shell Plc and Chevron Corp, which are also slashing positions in Singapore.

Exxon said in October it would cut its global workforce by 15%, or about 14,000 people, by the end of 2022.

The oil industry was hit hard by the price crash last year due to the Coronavirus, while it also faces long-term challenges as fossil fuels are gradually being replaced with cleaner alternatives.

Meanwhile, refineries in Southeast Asia may come under pressure from the mega factories opening in China.

Shell said in November it would cut oil processing capacity at the Pulau Bukom complex in Singapore by half, leading to hundreds of job losses over the next three years.

The Business Times reported in November, citing a Chevron spokesperson, that Chevron could cut 10% of its workforce in the state.

The major oil companies are losing thousands of jobs worldwide. BP Plc plans to cut 10,000 jobs, Shell will cut up to 9,000 jobs, and Chevron announced a cut of 6,000 jobs.

Exxon said in the statement that the job loss in Singapore was due to the reorganization accelerated by the epidemic, and that the changes would boost competitiveness in the long term. A Singapore spokesperson confirmed that the plan came on the heels of last year’s announcement of reducing the global workforce.

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