|
Exxon Mobil expects bigger job cuts 16,000 vs. 9,000
David Koenig Associated Press Business Writer
The merger of Exxon and Mobil will mean far more job cuts than previously estimated almost 16,000 instead of 9,000.
Exxon Mobil Corp., created in an $81 billion deal that won final approval Nov. 30, said Dec. 15 the cuts will take place by the end of 2002.
Six thousand of those jobs will be eliminated through early retirement, said Exxon Mobil vice chairman Lucio Noto. The company would not say where the cuts would take place.
Before the merger, Mobil Corp. had been based in Fairfax, Va. Refining and marketing operations are still based in Fairfax.
Lynn Russo, a spokeswoman for Exxon Mobil in Irving, Texas, said the Fairfax offices will not face any more job cuts than previously estimated.
When the companies announced their plans to merge a year ago, the number of employees expected to lose their jobs was put at 9,000.
About 2,000 people have already lost their jobs as a result of the combination.
Cost savings up substantially Chairman Lee Raymond said cost savings from the merger will be $3.8 billion instead of the $2.8 billion previously estimated.
The synergy benefits of the merger are expected to be greater than previously forecasted and are likely to be realized sooner, Raymond said at a meeting with Wall Street analysts.
The Exxon-Mobil deal underwent what Raymond and others called the most exhaustive regulatory review ever for a merger. It required the approval of federal and state officials and regulators in Europe and Canada.
The Federal Trade Commission required Exxon Mobil to sell about 2,400 service stations, a refinery and other assets. The combined company retained all of its oil and gas reserves and still has more than 45,000 stations worldwide.
| 