FAST FIVE: In Unprecedented Cost-Cutting, Exxon Is Firing 15% Of Its Workers To Keep Dividend
ZOOM vs EXXON: Revenue (LTM): $1.34BN vs $214BN Employees: 3,427 vs 75,000 Market Cap: $141BN vs $136BN – zerohedge (@zerohedge) October 29, 2020 In an attempt to recover some of its former glory, last night Exxon announced that it would be keeping its precious 87 cent/share dividend, which many had expected would be cut amid the ongoing devastation in the oil sector.
Keeping the dividend, however, meant that Exxon would have to trim fat and/or muscle elsewhere, and on Thursday Exxon unveiled the latest unprecedented cost-cutting measure when it said it slash its global workforce by a record 15% over the next two years, an unprecedented culling by North America's biggest oil explorer as it struggles to preserve dividends.
The figure includes the US job cuts, as well as layoffs and retirements previously announced in Europe and Australia, and future reductions in Canada and elsewhere.
Exxon's dividend yield is now more than 10%, indicating that investors are anticipating a cut yet management is fighting tooth and nail to avoid one, and is hoping that the price of oil rebounds in the near future.
Despite maintainingd its quarterly payout, Exxon is expected to post its third consecutive quarterly loss when it reports earnings tomorrow.