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EOI choice was made based on individual readiness to retire and financial factors. Period.
Just an FYI, many EOI elected it to save their dignity
1H2016 ESP barely scratched the surface. Most of the incumbents were hired back. It was mostly the EOIs that were let go.
Absolutely correct. There is way too much deadwood left that needs to be cleaned out around here. They have been living large on the company payroll at everyone else's expense. You can't keep the do-nothing professional meeting-attenders if you are worried at all about the bottom line.
It's about time if you ask me. This sh---tip has been carrying too many for too long.
I have no idea how this is sustainable.
According to public SEC filings, Chevron reduced headcount by 3200 from end of year 2014 to end of year 2015. Dependent on how many were let go from 1H ESP, I suspect around 2000 then there will be another 3000 for the remainder 2016. Either way, the bloodshed of employee reductions will continue at Chevron and other companies as long as companies are in the red. Hope everyone who still has a job can hang on until the storm passes. For those who don't have a job, I hope everyone has enough in savings to whether the downturn as well.
ESP cuts not included. Because I know guys who are still on the payroll until June. So additional cuts are 1000.
I don't believe that the ESP cuts have been included in the 4000 reduction to date. Most employees let go from the ESP are technically still employed by Chevron for several weeks after they get notice.
1ddu and others, yes, hang in there as best as you can, but don't count on $70/BBL by summer. Many are forecasting $40-50 for the rest of 2016, may not see $70 until 2018, or when 2 MM BPD gets taken out of the supply side.
1ary, you are correct. May be you could negotiate a joining bonus that will neutralize the pro rata remaining severance. Also there are other companies. Exxon will grab the laid off chevroids. So will Shell and dozens of other smaller companies.
1ddu - you forgot... those who sign off on Release waiver and received the severance will have to wait for 3 years before Chevron will consider hiring them again, unless you pay back the severance pro-rata.
1ixm, I suspect when they say 4000 so far, that may only be till 1Q2016. 1H2016 layoffs of 2500 not included in that. If you include that, only 1500 more to be laid off. By the time summer comes around, oil will be in the 70s and there will be no need for any more layoffs. Happy days will be here again snd Chevron will be hiring as if there were no tomorrow. Hang in there.
@-1ixm - Thanks for that link
1) Go here: http://www.chevron.com/investors/events-presentations/1q-2016-earnings
2) Open 2016 1Q Earnings Transcript PDF
3) Go to page 5, about half way down:
/quote/
On the organizational side, to date we have reduced our employee headcount by more than 4,000 relative to year-end 2014 and we are on target to achieve approximately 8,000 total employee reductions by the end of 2016. We are also on target to reduce our contractor workforce by about
6,500 from 2014 levels.
/end quote/
I'd say we are only half way there (4000) including 1H ESP, and have another 4000 to go in 2H 2016
I imagine Alpha2 (ETC, ITC, et al)as rumored, BUs that have not yet optimized, sold assets (Hawaii, Myanmar...) Bus being closed down? Maybe they will throw in some MidStream and Downstream?
Another ESP or just an RAE?
About 3000 in 2015. 2000 in 1H ESP. They called it 1H for a reason. The 2H ESP will probably account for the remaining 3000 which is up a 1000 from last earnings call. I would expect chevron to continue with layoffs every earnings call until they can right the ship and report positive earnings. The faster the oil price increases the best chance everyone has to keep a job at chevron, otherwise we are all at risk to see the exit to keep paying that dividend.