Confirmed. Targets and goals reached in getting production costs profitable at around $35/bbl.
There will not be another round of mass cv layoffs in 2020. However, EOY rankings will determines who’s let go 1st quarter 2021.
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Already at $36 this morning. Would there be layoffs at $25/bbl? If you don't think it would ever get there, then buy the appropriate options and get rich. Otherwise, keep your office cleaned out for an easier exit.
Classic MRO thinking: Investors shouldn’t compare us to other ways they could invest their money! Wow...
Every gazelle wants to be measured against a slightly slower gazelle. But God measures the gazelle against the lion. Why should MRO be judged differently?
I disagree with the previous poster; we're an INDEPENDENT–it'd be silly to measure us against the S&P500; it's literally comparing apples and oranges. Financially, the company sits pretty good where we are right now during the downturn and I'd say things will pick up quiet a bit after the election.
The poster who asserts that peer companies' performance has no relevance to MRO's decision making could not be more misguided. Note that the external company webpage, in the section labeled "strategy" states in the first sentence that MRO will be "peer leading". It is implicit in this sentence that MRO will adjust its metrics relative to peers, and thus that MRO must adjust its cost structure ("employees") relative to peers.
The Tillman is in hard place - the institutional investors are no longer satisfied to measure his "success" against equally poorly performing "peer companies" (Hess, Devon, Ovintiv, Chesapeake, etc.) - they want to measure him against the S&P 500 or other more objective measures. Can he retain the corporate jet? Or the race cars? Measured against the broader market he would not have received a bonus in the last 6 or 7 years, and he knows it. Under this pressure, the Tillman will do everything he can to bring the costs structure in line with "peers" - and he'll throw everyone over in the process (and I mean "everyone" - watch out VPs and Directors, your time approaches swiftly).
The institutional investors want to move Tillman from Triple A to the Major Leagues and measure his performance against a different peer set. The Tillman wants to avoid this at all cost.
That assumes the pathetic Management knows what a person has done or can do.. Poor performance was definitely not what got some this time around. I think age was a big reason several were let go. Can they be replaced.. Only time will tell but alot of experience is now gone and replaced by inexperience.
So no more layoffs then are they planning a mass firing?
I KNOW first hand the April layoffs were not performance based. They were NEED based. If someone else was able to do your job you were laid off. If you could only day one thing you were laid off. The more hats you could wear the more likely you were to have kept your job. Whoever the last poster was please hush it and take several seats.
Don’t be dvmb; how do you think they labeled people for layoffs if it wasn’t performances based?!?!?
I AGREE 💯% with the comment stated below!!
“ I think it is very ignorant on anyone’s part to think that layoffs are only happening to “low performers” or being based on “rankings”. Everyone I know of that got laid off in the last round were all high performing employees with no issues on their reviews, rankings or job performance.”
I think it is very ignorant on anyone’s part to think that layoffs are only happening to “low performers” or being based on “rankings”. Everyone I know of that got laid off in the last round were all high performing employees with no issues on their reviews, rankings or job performance.
What the peer companies do is irrelevant. Yes, Hess, Ovintiv, and a few others recently had layoff-but they’re just now catching up to what we did in April so not really a good comparison.
Lee’s actually done a pretty good job keeping the company afloat during this trying time—albeit by ruining the lives of several dedicated employees (at least in a financial sense).
One of Tillman’s (many) failures is his inability to chart a long term course through the sturm und drang of the quarterly results. He simply hopes to avoid being pitched over in the waves, and to look good while doing it.
As such, the Tillman doesn’t necessarily know if more layoffs will be necessary. All metrics are relative to peer company results. Thus, significant cost cutting (through layoffs) at peer companies can theoretically lead to subsequent layoffs at MRO if the peer company layoffs significantly improve others’ metrics. Ovintiv, Hess and Devon have all had recent layoffs. This may be indicative of our future.
I find it instructive to think of Tillman and associates as a small group of pirates tossed about the open sea on a small craft, throwing the furnishings overboard to survive and wondering when to turn to cannibalism. Think Raft of the Medusa or the Whale Ship Essex. Best keep your distance, mates.
They won't wait until next year to announce layoffs, they'll do it in the fall before benefits enrollment begins. Easier to clean house that way.
And of course Marathon would lay people off while giving other employees bonuses. A certain racing-suit-wearing executive got a $1 million raise in the midst of laying off 40% of the company and the stock price losing 80% of its value.
Well darn. Guess that means no voluntary layoff package. Sort of ready to go
End of year rankings aren’t happening because there’s no calibration.
At the town hall, Lee talked about the updated performance metrics and potential for employee bonuses. I took that to be a signal that layoffs were done if things (oil price) stayed at current levels. Would Marathon lay people off and then pay the remaining employees bonuses? Talk about eating your own.
If wall street becomes entetained by RIFs than there will be cuts.
After employee R&R there will be firings.
No BS from people with limited experience in downturns makes any sense.
Just curious on the rationale behind a Q1 2021 layoff rather than before EOY 2020?
End Of year rankings to decide who gets let go in the first quarter... That assumes only low ranked personnel get let go. Marathon let go of several highly rated employees during the last layoff, so I wouldn't just go by rankings
Heck of a way to live, always wondering if you’ll survive the next cut. Speaking of the next cut, a change at the top, to include his British accented lieutenants, would be most welcome at this ‘Texas’ Company.