Thread regarding Imperial Oil Limited layoffs

History Repeats

This is from 2007-2008 period when Calgary’s job market was hot. Lots of young engineers were quitting Imperial Oil. Imperial was desperate to retain its people. Salary bumps across the board were in double digits (and not the lower double digits).

I remember attending Engineering VP Eddy Lui’s town hall meeting for the engineers and geoscientists. Eddy was explaining how Imperial Oil had a d-mbbell shaped demography curve - lots of people in their very early careers, lots of people at the end of there career, and almost no-one in the mid-career in the company. The reason for this demography was Imperial’s decision to lay off and not hire anyone in the early and mid 90s. Eddy said, “Never again Imperial will make such a mistake!”. In his words, Imperial will hire engineers at a steady pace irrespective of the company’s situation. Eddy and upper management were worried about the future of the company. When the seniors retire, they would leave a vacuum in the company.

Let’s come to the present now. Some of the folks who attended that session are at the top of the company now. I am telling you, you folks will have to repeat Eddy’s comment when no one will come to Imperial Oil when the market recovers. You will be saying, “Never again Imperial will make such a mistake!”.


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| 2792 views | | 7 replies (last October 17) | Reply
Post ID: @OP+1k7jmn2be

7 replies (most recent on top)

@ez imperial was never built by smart people. It was built by commodity value in spite of itself. If it was selling any other product it would have been out of business long ago.

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Post ID: @pw+1k7jmn2be

We all have short term memory.

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Post ID: @p4+1k7jmn2be

Why are you worried about it? It's their choice.

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Post ID: @gd+1k7jmn2be

Oh, the Good old days. When Imperial had a bright future.
This really shows how poor or ruthless management can ruin a computer.

This seems to happen to every company as some point. It gets built up by smart people who want to build a successful business, only to have it torn down by greedy, short sighted, incompetence... with an MBA or course.

That the life cycle of many companies.

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Post ID: @ez+1k7jmn2be

The mass layoffs and stopping hiring could be a problem if the company was actually planning any growth or even a stable headcount. The reality is that Imperial as we know it is gone. The company used to recruit top students from top national universities like Queen's, Waterloo, McGill, U of T. Now the company gets average students from Mount Royal College and U of C.

Imperial used to have lots of opportunities for progression, 10-20 years ago. Now EM has gutted any corporate roles and the only thing left is field operations roles. Stopping hiring isn't a problem if you're planning to shrink into obsolesce the way Imperial is doing. It's sad to see.

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Post ID: @eq+1k7jmn2be

It feels like this time is different because IOL is doing well- profitable sites, benchmarking well compared to other O&G majors, decent $/bbl price, high share price. This isn’t a temporary layoff to save $$ in a downturn, this is permanent move to jobs to other countries to prepare for a lean future in a declining industry.
I also remember talking about “peak oil” in those days, sessions about how future oil reserves were going to become more difficult and expensive to extract, and peak oil was the biggest threat to the company. No talk of environmentalists wiping out our industry, AI taking over our jobs, offshoring everything to 3rd world countries for pennies on the dollar. I had a desktop computer and working from home was for the chronically ill people with special home-office setups. Fresh college grads would compete for who could land the best position with the biggest oil company- now students know better than to get on this train.

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Post ID: @a2+1k7jmn2be

I remember attending the session. Eddy also announced ECM, ASM, STP, etc. in the same session. It was a ExxonMobil thing to retain technical staff. They called it a parallel career ladder for the technical folks, similar to the one for management.

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Post ID: @a1+1k7jmn2be

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