10% of US Employees gone, most of the contractors gone, 401K matching is gone, most projects cancelled. So what's next? Cut pension? cut middle management? XOM assets are over-valued and once that's corrected, it's definitely a nose dive for what was once ExxonMobil. Next year, do you think you will see ExxonMobil in the top Fortune 100? Maybe not.
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LOL!
The company’s worth did not tank 40% due to “the virus”. What a joke! The financial problems were there before the virus. Let’s tell the truth!
Normal retirement attrition is 3% per year. Normal "other" attrition (low performers and voluntary) is about 2%. Many leave to get a Masters or MBA or law degree. Anyone who quits and is in bottom 2 quintiles is classified as "non-regrettable" attrition (ie the company does not care if low performers quit). The system is designed to get them to go voluntarily in normal business climate. Salaries go up when attrition of good performers becomes excessive. We saw this in 2006 to 2009 and salary curves went up and upstream premium introduced, although the system always lags in recognizing that compensation is too low. Upstream premium will disappear, but cold come back. This cycle has happened many times in the past . In early 1980's the company retention perk was the company car and deferred compensation
Large companies like TESLA are doing similar performance cuts. It's literally every company doing this.
Only 4% US workforce reduction (3000 employees) by Year End and many will be retirements be voluntary or retirement. I expect another 3000 another 3000 in 2021
Many companies have suspended their savings plan match. This isn’t new , and is necessary for businesses to survive until COVID Disappears and the economy Returns to normal.
The O&G industry is doomed in the first place. Why? Biofuel is finite. Eventually, wells dry up and all potential energy converted to kinectic and then gone. This industry is temporary. So the writing in the wall is that the once mighty ExxonMobil is d e a d. So that's what's next.
Pensions and platinum-level Medical coverage in the US just got to go now.
For the percentage of employees that doesn't understand the exploitation when these (and matching) compensations are taken away - that's the breed that's wanted for keeping. I'd guess that's about 50 percent of the current US staff. They don't understand the nature of Human Capital. So expect US cuts to staff and bennies to continue and escalate.
If pension is cut / phased out, just wait for the exits. Probably not in this economy, but as soon as it recovers from this cycle, the attrition will be soaring.
What the hell did you expect for a company that makes a commodity whose worth tanked 40% due to a virus no one could see coming? That they would never make any cuts? None of the majors will be the same and all of them are having to cut to survive. Let’s talk in 2 years. An ugly truth is that the further you are away from the actually having something to physically do with processing hydrocarbon, the more likely you need to polish the resume off and think about getting a real trade. This business is full of m—ers who pretend to be managers but don’t know sh– about what it takes to actually run a plant or oil rig and the pretenders are about to find out.
Many other companies outside EM have already rescinded 401k investments for their employees. Everyone on this sub needs to get over themselves and stop playing the victim.
The ship is sinking, but they are throwing low performers overboard as quickly as they can. ExxonMobil needs to increase its workforce reduction (15% of professionals) and asset sales and reduce executive and employee compensation/benefits by 20%. Asset sales could reduce workforce by additional 10,000 in 2 to 4 years.
@cpy provided the board knows that this ship is sinking. Else, the party goes on.. bunch of careerists steering this ship. I doubt anyone bothers if it sinks, will just find another job after it’s over
XOM won't even be at the top Fortune 1000 with 2nd consecutive quarter loss. Rest of the year would even be worse with asset valuation correction. We are witnessing history in the making.
With most projects gone, get rid of most Corporate staff and retain only the field workers and all critical personnel. That's how you save the sinking titanic.