We actually have lives, we need money to pay the bills, we all have families and other obligations to take care of. Is there a reason why everything is being dragged out like a bad soap opera? We get it, there will be layoffs, so how about they spell out the plan so all of us have a timeline and a notion on what really is coming, and can act and plan accordingly? Jesus.
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Human Energy is a joke. Executives at CVX continue to pad their pockets. Their newest scheme is to send jobs overseas and lay off American workers. The company deserves to fail.
They haven't thought that far ahead! This reorg is their way of delaying their own demise for as long as possible. They don't really care how it is done as long as it doesn't impact the bloated top half of the company.
Seems like the Human Energy company will be running out of energy after these layoffs.
All eyes on the Hess deal!
No, contractors are not included because there is no severance cost to firing contractors.
The news says MW wants to cut costs ahead of HESS merger as capex will be needed for Guyana. Or, if HESS fails then costs have to be minimized as our stock will crash.
The good news is the layoffs could take all of 2025-2026, two full years. This is because they will be related to HESS. If HESS occurs, a merger layoff will occur. If HESS fails, a CVX layoff will occur. That's why two years is needed. The sooner we have a HESS decision, the sooner we fire 10%.
The curious part is announcing the cuts and taking the costs in 4Q2024. Why take a hit to earnings now? Why not just take it if and when it comes? This could prove to be a d-mb financial move that we need to revise later. I suspect management wants to make this move now as doing it later under the incoming US President could result in horrible penalties. So, you can thank for red hat friends for this layoff.
There has been one constant with every layoff and reorg:
Management lies.
They have to lie. Scared people don’t work.
1xfl+1vPsbR3X LOL one in ten in the office who could go? Clearly this person has never been dolphin watching at the ABU ivory tower where advisors without portfolio meet supervisors with no clue. Try about 3.
@1isr, Salaries are a bit higher, but the work output is much lower. So the cuts need to be deeper and more effective in clearing out the deadwood.
Does the ~5100 layoff number include contractors? Or are we thinking that this is in addition to contractors?
The 2020 layoffs had a 780 million charge in Q2 2020 for severance and resulted in roughly 5,000 terminations. Salaries are a bit higher now so that's probably the target with the 900 million this quarter.
No, we have ~20k in the US. So ~5,000 would be 25% reduction in headcount..
Also, not sure how you figure $175k as an average severance.
Also keep in mind that Chevron has many more employees per rig/facility then its competitors. I would not necessarily say the office or the field is more or less safe.
Bare in mind that large portions of Chevron staffing are tied to field ops and other difficult to cut functions.
I would expect that 5-10% global cuts would result in 15-30% cuts across many office functions.
$900 million in severance. An average severance of $175,000 means 5,100 laid off. That is a bit more than 10% of current US employees so not a big deal. Everyone can look down a hallway of ten people and think of at least one that is really not needed.
https://www.chevron.com/newsroom/2024/q4/chevron-announces-2025-capex-budget
Restructuring and other charges expected to be $1.1 to $1.5 billion in 4Q24
4Q24 Interim Update
In connection with recently announced plans to achieve $2 to $3 billion in structural cost reductions by the end of 2026, the Company expects to recognize a restructuring charge of $0.7 to $0.9 billion after-tax in the fourth quarter, with associated cash outflows over the next two years.
I think the news dropped in 2024 was initiated earlier than intended. I suspect it was intended for 2026 when most of the changes will start to happen. MW probably started the process early so he could get many to leave on their own before reorganizations and layoffs. This saves money and makes him look good with BOD. While the gift of time is painful it does afford you the time to look for a more stable company. What is sad is the mishandling of the loyal Chevron employees will leave a bad taste when we leave. This could have been handled better IMO.
I've been at a small firm where I was told one day and gone the next. I'd prefer it this way.
Mike, you had me at EOI. 👋 $$$
Because Wood Mac consultants told them what the solution was before anyone thought about it. Working backward.
If leadership is investing $3B on this effort, one would think they have been working on this for years. Wish they would stop insulting ours (and their own) intelligence with the “we are transparent” but will tell you nothing stance.
This is becoming a survival of the fittest hyper competitive dog eat dog winner take all new gilded age, with the rank & file trying to support families getting sent to the wolves that is the harsh and unforgiving Houston health and auto/property insurance markets, as well as the higher property tax that is due whether or not you have income.
You'd have the same complaint if you were blind-sided by a layoff...or a layoff in 1 month...or in 6 months... There is NO good time for bad news. At least someone had on their thinking cap and figured out if they are going to do it, do it before they spend a bunch of money on relocating people.
The most appropriate course of actions for all employees is to plan for the worst - to lose your Chevron job in early 2025, receive severance plus 6 months unemployment and figure out the rest from there. If you are lucky, you will be spared but if not at least you will be prepared.
It’s all about the lawyers
because they are human beings just like you.
They aren’t saying anything because the company is looking out for their best interests.
You have to look out for yours.
He bluntly said the plan will affect people and recommends taking advantage of programs the company has to offer to relieve stress and help mental health.
Oh lawdy the axe man cometh!
Because there’s no benefit to them telling you their plans until they’re ready to execute them. Can’t have you looking for