What you guys think? Are staff reductions still likely after 30% pay cut? Can anyone with insights of any such discussion please comment?
8 replies (most recent on top)
I have spent most of my adult life in the O&G business... "THE GREAT REDUCTION IS COMING, BE PREPARED." So if you just started a career in the oil and gas business, please remember this... get out now and don't ever come back! I should have listened to my boss in 80s; I was in my 20s, when he shared this advice with me!
Go ahead and lay us LAPC people off. Do it before 3 years have elapsed. We'd much rather have our juicy CoC than a job in this zoo.
@lnb+14ezTpz4 Don't blame Saudi or Russia. This was entirely self-caused by VH and the EC's hubris and seeming inability to understand Economics, Math or anything beyond English literature (the poetic, flowery b—s— in the email came from somewhere)
Additionally, this is what happens when Oil finally meets the free market. Production discipline is important, just look at Walmart and Amazon; they can't endlessly produce assuming someone else will stop for them. A new reality is here.
Oxy got a preview in 2015/16. They simply didn't listen.
You can count on staff reductions with the forecast as bad as it is. There are a lot of employees that make a lot of money and with no rigs running and production going to be shut in things are not good for employees. The government stimulus also adds to making the execs not fill so bad in letting employees go, if they felt that bad in the first place. There are many employees that make over 100K a year, and a lot of technical people that make over 150K-175K a year that will not be needed in the future. I have a feeling that we are going to be hit hard and I am just waiting for the call to end my time at Oxy. Unless oil turns around tomorrow and gets to 40-50 fat we are hosed. If you have product in the ground that we can't make money on we are in deep sh–. Plus, once supplies is full there is no where to pump the oil. If we ever get the chance to let Russia and Saudi burn in hell we need to let it happen.
LAPC will be payed off in August. I’d predict at least 30% will be on em the chopping block.
Yes, that is what she is implying. Of course, layoffs only apply to legacy Oxy.
Staff reductions are always an option. Always. Nothing is safe in this company or industry environment.
I would say yes to staff reductions. I wish the 30% was enough, but if you read between the lines it seems we are being prepared for the worse. It really amazes me how fast everything has come about, and that we were not better positioned to weather at least a month of the storm. The fact Oxy had to react with the wage cuts after only a month or less tells you all you need to know. These are going to be tough times for the next few months or even a year, but all you can do it your job and hope you don't get cut if you need the insurance and benefits. This virus is on par with some of our worst times from the past. Once can only imagine 1,000,000 deaths in the USA, and that is what they thought could have happened without social distancing. I want to keep my job, but controlling the virus is number one now.