Thread regarding ExxonMobil Corp. layoffs

Exxon plans to annually cull up to 10% of U.S. office jobs for next several years
By KEVIN CROWLEY AND JOE CARROLL on 6/21/2021
Source: www.worldoil.com

HOUSTON (Bloomberg) --Exxon Mobil Corp. is preparing to reduce headcount at its U.S. offices by between 5% and 10% annually for the next three to five years by using its performance-evaluation system to suss out low performers, according to people familiar with the matter.

The cuts will target the lowest-rated employees relative to peers, and for that reason will not be characterized as layoffs, the people said, asking not to be identified because the information isn’t public. While such workers are typically put on a so-called performance improvement plan, many are expected to eventually leave on their own. This year’s evaluation is happening now but affected employees have not yet been notified, the people said.

“Our annual performance assessment process has been occurring over the last several months,” Exxon spokesman Casey Norton said in an email. “Where employees are not contributing to their highest ability, they may need to participate in an improvement plan. This is an annual process which has been in place for many years, and it is meant to improve performance. This process is unrelated to workforce reduction plans.”

The plan is separate from Exxon’s announcement last year that it will cut 14,000 jobs worldwide by 2022, and it would extend reductions well beyond that original time frame. It’s a tumultuous time for Exxon, which is still grappling with the fallout from last month’s annual meeting, when shareholders rebuffed top management and replaced a quarter of the company’s board over climate and financial concerns.

Exxon had 72,000 employees globally at the end of last year, of which 40% worked in the U.S., according to a company filing.

White-Collar Jobs

Several high-profile traders have also left in the last few weeks. While the performance-review process mostly applies to white-collar jobs such in areas such as engineering, finance and project management, there’s no suggestion the trading departures were related to the review program.

Exxon’s other cost-cutting initiatives have included suspending bonuses and halting employee-contribution matches to 401k savings plans as the pandemic crushed demand for crude, saddling the company with a record annual loss.

International crude prices have surged 44% this year to almost $75 a barrel, improving Exxon’s financial position markedly. Still, the supermajor has some way to go to pay down debts accumulated during 2020’s market collapse. A smaller and more efficient workforce is key to further improvements.

Exxon achieved $3 billion of annual “structural cost reductions” in 2020 and will continue to make savings through 2023, Chief Executive Officer Darren Woods said at the annual meeting in May.

“We’ve got additional work to continue to take advantage of the new organization and find opportunities to reduce our costs,” Woods said.

Exxon’s shares rose 3.6% to $62.59 at the close in New York trading amid a broad rally in energy stocks on stronger oil prices.

ESC within EMRE is 8% pip target this year not 5%. Unless they changed it.

In response to @vdn+1buLaTcb, ExxonMobil management (Department Heads, Directors, V.P.'s and Presidents) truly believe that employees "cannot handle the truth". That is why employees receive more accurate information from Reuters and other news agencies before we hear it internally.

Movie buffs will recognize this quote as the most memorable line from A Few Good Men, spoken by the character Col. Jessup, played by Jack Nicholson (“You can’t handle the truth!”

Angst. So that is what I am feeling. I was thinking of a bit more colorful description.

So the tax subsidies on which EM survives will transfer from 'R&D' to 'Carbon Capture'.
Sounds good on paper.

This is a commodity company, folks.
If you're not packing and stacking canisters of goop - they will quit you.
Simple that.

Target is 8% PIP at most locations.

Going to be ugly in Annandale, time to loose the 3rd floor and all of HR, Frank said to tell you hello.

CSR guy is probably getting black out drunk tonight from joy

By the power pipped in me, I summon you! CSR Crusader, come forth!

Is it just a simple majority vote of a board to fire a ceo or does take more steps? Is anyone aware of the process?

I left EMRE last year. Not sure if they could even afford another round of PIP/reduction. With some of the younger workforce that got pip'd (or left) and the older workforce that retired (forced or voluntary), there isn't much personnel in the site. Some units are just sitting there collecting dust and I've heard some researchers are running their own units. Maintenance on the other hand suffered a severe reduction and some people are itching for work. Attrition will spike to the point that there will be left with almost nothing. The headcount over there will not justify XOM to be there anymore.

Especially with R&D writes offs changing next year. It will be rough on the R&D side of things. Hopefully if XOM goes forth with Carbon Capture in Houston, they will consolidate all the good people at EMRE there. Hopefully people have a plan B if things don't work out

Its sure shameful how more honesty comes from outside news sources versus company management