HOUSTON — ExxonMobil will cut more jobs than originally stated, but the firm has given no indication of how the cuts will affect its plastic resin business. ExxonMobil of Houston now plans to eliminate 16,000 jobs, about 13 percent of its total work force, by the end of 2002. That total is 7,000 more than the firm expected when the merger of Exxon Corp. and Mobil Corp. was announced in December 1998.
"It's too early to tell how individual divisions will be impacted," a company spokesman said.
The job cuts and other expected benefits are expected to provide annual savings of $3.8 billion within three years.
The Federal Trade Commission approved the merger Nov. 30 after the firm agreed to sell off more than 2,000 of its gas stations. ExxonMobil's extensive polyethylene holdings were not affected by FTC's review.
ExxonMobil has about 11.5 billion pounds of global PE capacity. In North America, the firm ranks second in HDPE and LLDPE capacity and third in LDPE capacity.
The firm's Irving, Texas-based chemicals unit, which includes plastics, posted sales of about $17.5 billion in 1998, representing about 8 percent of the company's total sales.
Almost 17,000 — or 14 percent — of ExxonMobil's 123,000 employees are in its chemicals unit.