Newspaper article THE JOURNAL RECORD

Mobil Eliminates 2,000 White Collar Jobs

Newspaper article THE JOURNAL RECORD

Mobil Eliminates 2,000 White Collar Jobs

Article excerpt

WASHINGTON (AP) _ Mobil Corp. has cut a total of 2,000 white collar jobs this year as part of the ongoing restructuring of its domestic operations, the oil giant said Tuesday.

News of the job cuts, previously announced piecemeal by the company, followed word last week of layoffs by some of the nation's largest companies. Analysts have warned that the continuing erosion of the nation's work force points to an uncertain economic recovery over the coming months.

Mobil also said it was cutting its capital spending budget by $800 million. But the company also announced it expected an $80 million gain from the sale of its polystyrene business.

At Mobil corporate headquarters in Fairfax, Va., spokesman John Lord said the 2,000 jobs, mostly in U.S. oil and gas exploration and refining operations, have been eliminated through attrition and other means.

"It's not like we're saying today we're going to lay off 2,000 people by the end of the year," said Lord.

A few additional companywide layoffs were expected as the firm continues restructuring to increase efficiency and savings but those numbers "will not be anywhere near as big" as those already announced, Lord said.

Lord said he had no specifics on how many more jobs might be cut.

"It's just part of the ongoing downsizing that the industry is going through," since the price of oil plunged from $35 to $14 in 1986, said Stephen A. Smith, an oil company analyst with Bear Stearns Co. in New York.

Mobil, the secondrgest U.S.-based oil company after Exxon, employs 67,500 worldwide, with nearly 39,000 workers in the United States.

Last week, Aetna Life Casualty, the Aluminum Co. of America and Hughes Aircraft Co. all announced hefty cuts in their workforce. Following on the heels of those announcements was a report that the nation's unemployment rate stood at 7.8 percent, the highest it has been since 1984. …

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