With a shortfall of $48 billion expected through 2021, the largest oil company in the US, Exxon Mobil, is expected to announce massive layoffs and cuts to ongoing projects in the coming weeks, Reuters reports.
Exxon borrowed $23 billion this year, doubling its debt, to pay its bills, and projects like shale oil and offshore drilling have fallen short of expectations. Combined with a global recession and a decrease in demand, Exxon’s financials look shaky to investors.
The fiscal shortfall means that Exxon must scale back projects in shale oil and liquified natural gas, areas in which the company invested tens of billions of dollars, but whose returns have not lived up to expectations.
Exxon’s stock price has dropped 44% in three months as the company has announced cutbacks in various exploration projects and chemical plants.