I’m having trouble buying the value prop of these companies. Both seem to be very expensive relative to the value they provide. Specifically for GP, With the lack of manufacturing support activities and significant near term (and maybe long term?) capex reductions, is GP even a viable organization moving forward?
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@1kzi+178Q7KLy Aka Koolaid. That was an excellent summary and would have been the dignified way to handle the situation. What we have all learned from this is that EM leadership is more bankrupt than we knew - and I don’t mean financially
Before GP, the organization had lots of overlap. The merger has helped but with the vision of spend, spend spend, the new organization wasn’t down sized appropriately and remained heavy staffed and we even kept hiring. The EMDC model had more staff contractors I believe and this allowed for a better right sizing during project slowdown periods. The other issue is you could “hide” people in other organizations if there was a slowdown. This time around all 3 sectors of the business are in trouble and all areas are too big. So staffing cuts are a must.
Our fearless leadership (sarcasm) has decided to be underhanded and use PIP at 8% to start this instead of being honest with themselves and look in the mirror and say it’s time.
Cut back divided
Cut projects
Pay cuts for Dallas, stop giving shares to everyone
Cut staff contractors (this is why they are leveraged to protect base employees)
Cut staff as appropriate using voluntary layoffs and retirements first, and do not lie to us all including the investors and say EM isn’t laying people off. The entire industry is and we are no better then them.
GP needs to be smaller based on work ahead however we new to keep those with the correct skills and cut the supervision out.
Just my .02
@iom+178Q7KLy - I couldn’t agree more, and I worked in CSR until I was NSI’d.
It is a system problem. EM refiners have more engineers (more than doubles than Valero). But they are all doing paper work, so they are not capable to do simple things that an engineer In a small independent refinery can do. So, EMRE is not doing the the thing they should do, for example, basic turnaround support for refinery, which admittedly contractor can do with less cost.
Plant level? Our plant level technical prociency is completely daft. I would believe a contractor to do better work than the employees we use.
CSR in Clinton NJ is all its management needs to be shown the door. Worst of the worst
EMRE should be spun off to TA&M to keep their engineering grad school(s) afloat.
GPM was a lark. Clean it up a bit, then put back to the business divisions.
GP was created to provide a single organization to staff major engineering projects instead of having one org for F&L and one for Upstream. That makes sense overall, since you wouldn't have the issue of EMDC laying off people while EMRE was hiring. GP may shrink, but I doubt it will go away.
EMRE is more at risk being offshored, GP is more at risk for staff reduction
Both are bloated and need to be gutted!
GP for sure! Ramped up an organization to deliver a bunch of projects, now there are barely projects. Now we took people doing nothing set up these “initiatives” that will just turn into a bunch of overhead. What’s the best part? Almost all the initiatives overlap with each other. Good stuff!
Can’t help but wonder the viability of GP going forward. Does the Corp believe GP adds value? From a F&L standpoint, many efficiencies can be realized if the Capex was directly managed at the plant level.
GP...so many people in GP now creating work to look busy