The biggest U.S. oil producer has slashed costs, delayed projects and said it could trim an estimated 14,000 employees globally, or 15%, including contractors. Exxon reported its first annual loss last year as the COVID-19 pandemic battered energy demand.
The company will spend more this year than in 2020 as workers exit, according to the filing.
Total cash outflows would be between $400 million and $600 million, versus $47 million last year, according to the filing. Exxon had set aside some money last year toward the costs.
The severance cost estimate does not include job cuts related to changes in the company’s portfolio, it said.
Reductions should be “substantially complete” by year end, including voluntary and involuntary exits and the use of fewer in contractors, Exxon said.
In the first quarter the company had before-tax charges of $39 million mostly from employee separation costs in Singapore and Europe.
Cost savings from its global staffing review are likely to range between $1 billion and $2 billion per year versus 2019 levels, according to Wednesday’s filing.