Exxon Planning Major Work-Force Reduction

Exxon plans to drastically cut employment, but the reduction probably will be felt only slightly in California, where the world’s largest oil company employs about 1,000, the company said Thursday.

Exxon informed 42,500 of its U.S. employees Tuesday that the New York company would have to make a “significant reduction in staff” because of plummeting oil prices and a major restructuring announced last month, a spokeswoman said.

Each of the 42,500 is being offered either early retirement or bonuses for resigning by May 30, based on age and years of service, she said. If a surplus of employees still exists, employees will then be forced to retire or leave the company but with the same benefits and pay as those who leave voluntarily, she said.

Some employees will be given new jobs under the program, the spokeswoman said. The cuts will be completed by early fall, she said.

Exxon isn’t revealing how many jobs it plans to eliminate because the exact number hasn’t been determined, the spokeswoman said. But, she added that “not in any way do we intend to suggest that we’re hoping 42,500 people, or nearly Exxon’s entire (U.S.) work force, leaves.” Exxon employs about 1,070 people in California, including about 650 in Southern California, the company said.

In a letter to employees, Exxon Chairman Clifton C. Garvin said: “The decision to implement this work-force reduction has been painful . . . (but) unfortunately, circumstances have left us little choice.”