In Don Hrap's L48 townhall today, he said there would be 6% layoffs globally and 12% layoffs within L48, equating to 350-380 people getting let go in L48. He also said we are currently staffed for 25 rigs but plan to staff for 12 rigs. Does laying off 12% get us down to being staffed for 12 rigs? I just don't see how only 12% can get us staffed appropriately.
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@qst: thanks, I did not know that
It's amazing that no one has commented that the current leadership of the company are Engineers. I see how well they have truly "made the company money".
@alc - when you refer to post initials put an @ before the intials and it'll link to the poster - in your case it'd be @nvd @hjy and @kqr ( or you can go with @IvEzNLM-nvd @IvEzNLM-hjy and @IvEzNLM-kqr )
nvd, hjy, kqr: you just summarized TO PERFECTION why nobody with an Accounting or Financial backgronud should ever advanced past a position of line manager. Clueless is the only word I'd use to describe
If it were not for the geologist & reservoir engineers who found and help develop the fields, then why would the company need anybody else. They are overhead......
My question is why was a staff retained for 25 rigs in the lower 48 when it was stated that L48 was only going to run approximately 5 rigs. The right thing to do was do what SW Energy did, cut to the bone. Make the right cuts one time and move on. Shows that the ELT was not ready for prime time.....Time to the stock holders to revolt and fire with cause and not provide a golden parachute for the leadership of COP. Give them a heavy sandbag and drop them at the curb. And those on the COST team fire all of them with cause also.......for the wasted company resources......Isn't that what happens to folk whom are fired for fraud.....
It is sad times and feel bad for all the good employees that are treading water. It will be tough for many of the good workers finding new employment. On a side note, I EOI'd the last round and glad I did.
FYI producing oil is what generates cash.
If cop keep selling/divesting assets there won't be any cash flow to manage… with the current declining curve for most of the hydrocarbon wells and without geologist to plans wells and no engineers to drill the actually wells Accountants and finance people will be managing debts... let the Accountants and finance people produce oil with their stupid excel sheet.
I think the layoffs would cut across all departments but those on higher salaries are for sure more susceptible to layoffs.
We can do without HR and HSE for sure!!!!!!
Accountants and finance personnel are not stupid. He who controls the cash rules. Others are just workers. On a serious note, at this point it is about controlling cost and those on higher salaries are likely to be targets
Actually, the object of layoffs is to reduce costs and technical staff are mainly affected probably because they are better paid
@IvEzNLM-hjy you are really pathetic useless stupid individual….
finance people, accountants, IT are the stupidest individuals in the company. if it wasn't for the engineers/drillers and geologists, all the trash finance and accountants and IT people would never f*king existed in the oil and gas.
Yes I agree with you. Most of the Geologist, Drilling Engineers, Reservoir Engineers, Completion Engineers are costs at this point in time. They are actually very expensive (high salaries) and also replaceable. We should do away with them now and rehire or replace them when there is capital to spend on development projects in the future. We should keep the field personnel, finance people, accountants, IT , procurement to just keep the company running till the oil prices moves up.
I am not sure it the 380 number is net or gross. If the intent is for L48 is to have 380 positions less on October 1st, then there will be more let go to accommodate those being brought in from corporate. As to cutting IT, HR, and other supporters , I would guess you infer that we do not need computer to do our work, staff to pay our bills and wages, collect our earnings and disperse them to stakeholders and royalty owners, and pretty much look after a bunch of prima donas that think they need to be catered to and don't understand how an oil company generates profits for the true owners of the company. If you really think you are the one making money for the company, then maybe your the one that needs to be replaced because our stock price ( the true value of the company) s---s. REs, DEs & CE's are CAPEX (discretionary) and if you have noticed COP is 29.7 billion in debt, is your plan to spend more to solve the problem? As we have seen, that doesn't quite work ... And I am sure that when the price of oil goes back up, we will be able to find people to spend CAPEX, I just prefer to keep the people that will keep us a company, not a another Bankruptcy.
The folks that "think they are making money for the company" are working on assets that don't make money for the company - that is the problem
fix - I wish there was a like function or your comment
So this company, whose main goal is to pull hydrocarbons out of the ground, actually thinks firing all of the reservoir, drilling and completions folks will solve their problems. That's like an airline company firing all of their pilots to save the company.
I'd love to see all of the worthless folks in management, supply chain, global wells, HR, HSE, IT, iOF, the learning center, etc. get the axe. These people can be sustained at $100 oil but should be the first to go at times like this, not the people that actually do the work and make the company money. If you fire all of the people that actually make money for the company, there isn't going to be anything left for the list of groups above to work on.
Does this mean 50% of drilling and completions will get cut?
It's because not every position in L48 is tied to the number of rigs we are running. For instance - the wells already online and producing will still require about the same number of people to operate. Only certain groups (reservoir, drilling, and completions for instance) are directly tied to rig count. Others such as land and supply chain are indirectly tied. So some groups may get hit 30% or more while others won't be affected at all.
Corporately we were told 6% globally (about 1000 employees total) with some corporate groups getting hit anywhere from 10% to 50%.
Too much exposure if they layoff 1000+ employees again.