ExxonMobil expects to cut up to 500 workers in Singapore by end-2027

SINGAPORE: Exxon Mobil Corp expects to cut the number of its employees in Singapore by 10 per cent to 15 per cent and move its office to the site of its Jurong plant from downtown by the end of 2027, the company said on Wednesday (Oct 1).

The plans for ExxonMobil's Singapore operations come after the US major announced on Tuesday it will lay off 2,000 workers globally, particularly in Canada and across the European Union, as part of a long-term restructuring plan that will affect about 3 per cent to 4 per cent of the company's workforce.

EMPLOYEES NOT SURPRISED

Multiple employees whom CNA approached at ExxonMobil’s offices in HarbourFront declined to talk, saying they had been told not to speak to the media.

One employee, who did not want to be named, said staff were told the layoffs would take place by December at the latest.

Managers said they have not yet planned which roles will be made redundant and which will be moved offshore, such as to India, the employee said.

The announcement did not come as a surprise because staff cuts are already underway in ExxonMobil’s global operations, he said.

On Monday, Canada’s Imperial Oil, which is majority owned by ExxonMobil, announced it would cut 20 per cent of its workforce by 2027.

There have been “rumours” of layoffs in the Singapore offices. Managers expected it but were only informed on Tuesday night that they would need to communicate it to their staff, according to the employee.

The mood in the office on Wednesday was not sombre, he added, but employees had questions – for example, whether they can volunteer to take a severance package. They were told this would not be allowed.

The employee CNA spoke to said he felt Singapore has “lost its shine” as an oil and gas hub. Given the current uncertainty around the Singapore layoffs, he said he would adopt a “wait and see” approach for now.

UP TO 500 POTENTIALLY AFFECTED

In an emailed statement, Exxon Singapore said: "We are making changes to how we work so we can improve our competitiveness in an ever-evolving landscape and position the business for future success." The company added that the changes will reshape and restructure the primarily office-based organisation.

"While detailed planning is still underway and organisational design is not yet complete, we anticipate this will result in estimated employee redundancies of 10 per cent -15 per cent by year-end 2027," it said.

"We will provide the necessary support to our people," an ExxonMobil spokesperson told CNA on Wednesday. 

ExxonMobil now has about 3,500 employees in Singapore, so the expected cuts could hit up to 500 workers, although the company declined to give a firm number.

The company, which started production this month at new facilities at its Singapore refinery complex to produce base stocks from residue fuel, said it will continue to maintain its manufacturing presence in the country.

ExxonMobil operates two refining sites in Singapore, one at Pioneer Road on the mainland and the other on Jurong Island, with a combined crude processing capacity of 592,000 barrels per day.

As part of the change, ExxonMobil plans to move employees based at its HarbourFront offices to the Jurong Refinery at Pioneer Road in new expanded facilities by end-2027, it said.

"We’ve seen the value of bringing people together in the same location," said ExxonMobil.

"These changes are designed to improve our competitiveness, increase effectiveness, and drive innovation," it said.

EDB, UNION RESPONSE

The Economic Development Board (EDB), Workforce Singapore (WSG), and the NTUC Employment and Employability Institute (e2i) will continue to work closely with ExxonMobil to support affected employees, including facilitating job placements, EDB told CNA on Wednesday.

"ExxonMobil will continue to maintain a significant business footprint here, including in manufacturing, HQ, and trading functions," it added.

The ExxonMobil Singapore Employees Union (EMSEU) told CNA it is in discussions with the company to understand the scope and implications of the job cuts.

"We remain committed to safeguarding the interests of our members and ensuring their rights are protected," said the union, which is an affiliate of the National Trades Union Congress (NTUC). 

"The company has also committed to work closely with EMSEU to support affected workers during this process."

The union added that both it and NTUC are ready to offer assistance to help its members and workers transition to new job opportunities and provide financial support, if needed.