Five things to know about ExxonMobil's Singapore layoffs
US oil giant ExxonMobil will be cutting 300 positions at its Singapore affiliate this year due to "unprecedented market conditions".
This translates to about 7 per cent of its 4,000-strong workforce in Singapore. The Business Times (BT) understands that affected employees will be informed from March 8.
Here are five things to know about the announcement:
1) ExxonMobil is one of Singapore's largest foreign investors
ExxonMobil has invested more than S$25 billion in fixed assets in the Republic, according to the company's website. Singapore is the Asia-Pacific hub for ExxonMobil's downstream and chemical businesses and its integrated refining and petrochemical complex in the country is the group's largest such facility globally.
2) It is not the only oil major cutting jobs in Singapore
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Shell Singapore announced plans in November last year to cut 500 jobs over three years at its Pulau Bukom refinery. Chevron has said it will slash at least 10 per cent of jobs at its Singapore operations.
3) ExxonMobil says Singapore is still important to its plans
Its newly appointed Asia-Pacific chairman and managing director Geraldine Chin told BT in February that the firm is staying the course on the multibillion dollar expansion of its integrated manufacturing complex on Jurong Island. The complex is expected to come online in 2023.
4) Oil and petrochemicals exports are shrinking
Singapore's total merchandise trade fell last year, mainly due to a 31 per cent contraction in oil trade. Oil domestic exports contracted by 28.1 per cent while re-exports declined 5 per cent. Meanwhile, petrochemicals exports fell 8.1 per cent year on year in the fourth quarter of last year, and were among the top contributors to a decline in non-electronics exports.
5) Like other oil majors, the company is under pressure to reduce emissions
Last year, amid pressure from activists and investors, the company pledged to cut emissions from upstream activities by 15 to 20 per cent by 2025, compared to 2016 levels. On Monday, it named two new directors to its board, including a leading supporter of environmental, social and governance investing.
READ MORE: Clean energy pivot will yield green jobs, but time needed to fill them
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