EXXON U.S.A. STARTS PROGRAM TO REDUCE WORKFORCE, CURB ACTIVITIES

Exxon Co. U.S.A. expects to complete by Aug. 1 an employee separation program that will allow company-wide consolidation. The workforce reduction--including retirements transfers to other Exxon organizations, and separations--is expected to affect 10-12% of the company's nonhourly wage employees. The plan is intended to improve Exxon's efficiency and competitiveness. The U.S. division of Exxon Corp. plans to curb activities in all departments and affiliates, with the biggest cuts in

May 25, 1992

2 min read

Exxon Co. U.S.A. expects to complete by Aug. 1 an employee separation program that will allow company-wide consolidation.

The workforce reduction--including retirements transfers to other Exxon organizations, and separations--is expected to affect 10-12% of the company's nonhourly wage employees.

The plan is intended to improve Exxon's efficiency and competitiveness.

The U.S. division of Exxon Corp. plans to curb activities in all departments and affiliates, with the biggest cuts in marketing, production, and headquarters functions.

The workforce reductional program will begin with a voluntary separation phase. However, achieving the targeted reduction is expected to require involuntary layoffs as well.

A severance allowance based on years of service will be paid to all employees who leave the company voluntarily or involuntarily.

Exxon said hourly wage employees will not be affected by the layoffs because there is no broad surplus in that employee group.

OTHER MEASURES

In other moves intended operating costs' Exxon announced:

Plans to withdraw Nov. 30 from retail marketing of motor fuels in Los Angeles, Orange, and Ventura counties, Calif. The company negotiating the sale of 156 retail outlets in the three county area.
Company retail outlets in California, Nevada, Oregon, and Utah after Aug. 31 will no longer accept the Exxon credit card as payment for products and services. Exxon stations in the four state area will continue to accept American Express, Discover, MasterCard, Visa, and participating debit cards.
Discontinuation of price differentials for cash and credit purchases at company operated stations in the same four state area. The company has recommended that independent retailers of Exxon products in the four state area also discontinue price differentials.

Exxon said it decided to discontinue use of the Exxon card because of widespread availability of other payment options and costs of maintaining the company credit card in a four state area with relatively few cardholders.