Exxon Mobil posted its worst loss in history in the aftermath of the effects of the COVID-19 pandemic which has caused a brutal loss to the oil giant’s business and the global oil market.

The unexpected low demand for crude oil, jet fuel, plastic wrap etc has crippled the firm’s refining and chemical units. Several travel restrictions and economic shutdowns in various countries as strict measures were/are taken to contain the spread of the pandemic are some of the reasons for the company’s downturn.

The downturn has raised eyebrows as to the possibility of the firm cutting jobs, opting for furlough and massively borrowing to cover dividends, debts etc.

This double-quarterly loss comes at a vulnerable time for the firm after it just recently embarked on a multibillion-dollar rebuilding program. It committed about $15 billion in its annual dividend commitments, which is predicted by analysts at Goldman Saxhs Group Inc. to be an unprecedented debt load.

Reliance Industries is said to have removed Exxon as its second-most valuable energy company in the world. Many analysts have predicted that the company’s aim to maintain its dividends in this period of a drop in demand and supply is unrealistic and the company may be forced to make changes this year or by next, with its market cap already falling by half this year.

On Friday, Chevron Corp. also posted its worst quarterly loss in not less than three decades and predicted that the pandemic may continue to drag earnings. According to an analysis by Bloomberg, Exxon’s 26-cents per-share loss was better than the 64-cent average loss.

Exxon is said to have already slashed $10 billion in capital spending and freezing dividends and may have to cut between 5% to 10% of its employees in the United States which will be subject to performance evaluations.

With 37 oil refineries in 21 countries constituting a combined daily refining capacity of 6.3 million barrels (1,000,000 m3), ExxonMobil is the seventh-largest refiner in the world with a presence in several countries all over the world.