A report by Reuter’s Exclusive: Exxon prepares spending, job cuts in last ditch move to save dividend
https://finance.yahoo.com/news/exclusive-exxon-prepares-spending-job-152701171.html
7 replies (most recent on top)
Be reasonable people. The dividend is paying for my 2nd yacht, and muffy needs a new Rolls.
Xom is not going to able to sustain the dividend.
Assume more a coming. The only thing that matters is that stock price/ dividend.
From an investment POV, I think XOM is smart to try to keep their dividend and cut costs significantly.
Many investors (especially closer to retirement age ppl) hold XOM stock for their dividend more so than the growth potential. Also true for CVX and many companies in the sector unlike growth stocks and sectors such as APPL and tech.
Cutting the dividend is seen as a major red flag for all investors and would guarantee a selloff from investors holding solely for the dividend.
Regarding cutting costs, the problem is not with the forced bottom 8-10% "performers". The problem (at least in upstream o&g unconventionals) is with the structure and countless layers management.
I came from XTO where my previous boss had 5-6 employees and they knew exactly what was going on with each of our responsibilities. Because of this, his boss trusted him and the other managers under him (~13) to manage the assets and provide trusted recommendations and expectations. My boss' boss' boss was 2nd in line and then there was the President.
As XTO was consumed by XOM, my soon to be old boss has 13-15 employees under him. They can't possibly know as much about what is going on in the various areas, and they report to their boss who doesn't know the area at all, and I am left out of the conversation. My boss' boss' boss then reports up to who knows how many other layers of bosses and nothing efficient is ever accomplished.
Because this management structure, it's true that my job (and others in the bottom 8-10%) is much less needed and could be outsourced to India
A flatter structure is the right way. This already broken system is only breaking more. I'm curious if XOM's economic power will persevere, or if they are doomed from this broken structure and sickening culture. I can only imagine how awful the culture will be when people start becoming even more competitive with the new rakings and buckets.
Why does Apple have so much cash on hand?
Much of the money which Apple earns is generated overseas. Should funds be ‘repatriated’ to the United States, they would be subject to a significant amount of taxation. Instead of paying this tax, Apple long preferred to hold its cash overseas rather than bring it back into the United States. As Apple’s overseas sales have grown, so has its cash pile.
Exxon has no plans for layoffs due to the pandemic and no percentage targets to reduce its workforce through this year's employee reviews, said spokesman Casey Norton.
What a load of BS
The stock is already down but we can’t be seen as week so let cut more people to keep the dividend.
It’s odd what happened to all the cash we had a few years ago! Spent on poor business decisions but we have a divided.
Apple has over 200 bil on hand maybe they want to buy an again dinosaur.