Thread regarding ExxonMobil Corp. layoffs

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The old ranking system had an inherent bias against more experienced workers. It seemed inevitable that these competent professionals would slide down on the rankings. They were overrepresented in the bottom third. It was also not unusual for them while being in the”middle third” meant they were just above bottom third. There is a great difference between a “middle third” employee with an rgp of 34 vs 66.It would be interesting to see how “rateable” the age distribution was in the old ranking system.

The new system where all groups had to put employees in the bottom 10 percent resulted in the older competent employees were more at risk due to the old systems bias.It appears the new system has weaponized the old system to separate a large number of over 55 employees.

This has been done under the guise of no layoffs. It is performance related. Why not let employees this before the appraisals were submitted. Is this how it will be done next year? If so be clear about it now.

There will be another round of separations soon; these will be as part of another one of the “ countless” reorganizations. This one is aggravated by the hiring of 6-8000 employees In the past couple of years which were required by poor strategic direction by upper management.

This is not to say XOM does not need to take action. It has underperformed the market for many years. Change needs to happen but not just at lower levels of organization.The losses of the last two quarters are not just result of covid. Covid just exposed XOM weaknesses.

The way you treat people matters; this latest action will have long term ramifications in terms of retention and recruitment. There will also be a great reluctance for employees to give frank feedback about strategies and tactics to management for fear of reprisal. This has been part of the culture for many years; unfortunately the latest will result in remaining employees having less faith and trust in their management.

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| 3855 views | | 13 replies (last August 4, 2020) | Reply
Post ID: @OP+16ebwIlF

13 replies (most recent on top)

I went from middle of the pack in the old system, to somehow, doing the same technical effort, being in the top tier in the new system. Am I happy? Yes. Do I feel good about it? No.....since it’s clear how one slip can sink you to the bottom in one cycle.

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Post ID: @3owt+16ebwIlF

Chevron stock has outperformed Exxon for the last ten years.

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Post ID: @2kev+16ebwIlF

Yes 55+ are being targeted as I am one.

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Post ID: @2msn+16ebwIlF

@2ypl incredibly ignorant on who the shareholders are. Many in the company hold XOM shares in their 401k Many pension plans for others outiside the company hold shares. Heck, large Investors hold shares of XOM. They all vote for who heads the board of the company and the board gives a direction that the company moves.

Are they doing it for themselves, sure. But if they don't, they will be ousted by the voting shareholders and someone else will be put in charge.

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Post ID: @2csp+16ebwIlF

ExxonMobil executive-level management are shareholders. The corporation is trimming expenses by reducing headcount so that they can keep giving the shareholders dividends. Now tell me, who are the shareholders?

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Post ID: @2ypl+16ebwIlF

Chevron has been more aggressive on their writedowns. They have taken some related to “layoffs” where XOM does not have any despite paying people not to work for three months.

We will see the future holds ie will Xom will “ outperform” Chevron, a rare occurrence in the last 10 years. It will not be enough to attract new investors as xom will continue to underperform the broader market. In the savings plan employees would havr be better off investing in all other options vs Xom rxcrpt common assets. Sad.

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Post ID: @1rbd+16ebwIlF

Chevron out performed Xom in 1q ; $3.6b gain vs $0.6b loss for Xom
Chevron lost $8.3 in 2q vs Xom loss of $1.1b
Total loss Chevron $4.7b vs $3.5b

Note Chevron declared much greater non cash charges than Xom 5.2 b. Could be more write downs for xom in future?

Over last 10 years Chevron stock has outperformed Xom, plus 50 percent For Chevron vs loss in single digits for xom.
In
Both companies have grossly underperformed the broader market.

Re market capitalization in last 10 years xom has gone from no 1 spot with $325b to the 175b, Chevron market capitalization Is basically the same in that period; in grr $155-160b range.

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Post ID: @1hgy+16ebwIlF

Actually the situation reminds me of General Motors more than GE. Then again, the outcome is still the same.. foreseeable and insiders are in a state where they cannot do anything..

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Post ID: @1eyt+16ebwIlF

@OP+ this statement is so true.

There will be another round of separations soon; these will be as part of another one of the “ countless” reorganizations. This one is aggravated by the hiring of 6-8000 employees In the past couple of years which were required by poor strategic direction by upper management.

I recalled just a year ago, they were hiring as though we had so many HUGE projects in the pipeline. Even when the crisis hits, managers were aggressively converting contractors (whom they like) to employees, even though we foresee a big headwind where Exxon was performing poorly even lagging behind Chevron (if you recall Woods forum).. so far all projects doesn’t seem to deliver the intended returns and resulted in leading us to a worse state. Inherently it’s the quality of the upper management that is and will be an issue. My suggestion is for us to continue working l, get our wage and prepare for the worse to come. It looks like we are heading down the same path as General Electric. All the best to all.

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Post ID: @1rud+16ebwIlF

Somewhere buried in a Class Action settlement - 8 years from now - will be the statistics on the forced retirements. But Pravda-Huwei-XOM will not pay the penalty - will be pardoned.

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Post ID: @1mzy+16ebwIlF

You won't see the data on PIP on people over 55. They will simply retire. The incentive to retire is strong because of historically low discount rates for retirement lump sum. Many are at the 3 year average salary and executives who drop down ranking risk losing other compensation from EBU and RSU. They will retire. The other way to get older to retire is to assign to boring jobs. With activity low, many jobs are now boring. Watch 3Q and 4Q retirements.

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Post ID: @1cdh+16ebwIlF

I’ve seen no data to suggest 55+ employees are being targeted. A thread on here discussing demographics shows no PIP tendencies based on age.

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Post ID: @nrk+16ebwIlF

@OP+ please explain how exxon outperformed chevron in the last 2 quarters if we are just on a downward trajectory and earnings was not a result of covid.

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Post ID: @hps+16ebwIlF

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