If you have to run a company that makes money off the commodity, your profit is directly tied to.commodity price, production, and overall costs. The commodity price is out of your hand to control. The production increase or decrease has limits within each company and it is not an easy switch. The main tool is and has been the cost control. The biggest cost on any organization is the G&A, i.e. employee, I would say on average the cost of each employee for Chevron is about half a million a year [pension, health insurance, salary, bonus, etc.] So l
Reducing the head count is the easiest and most effective way to control profit/losses and when the time comes, there will be no other alternative. You either have to be lucky to know many in the company who think of you high, or be on the lower pay grade that your elimination would not make a big difference compared to keeping you on the long run and your ability to do the work of high paying employee. So save up as much as you can, invest broadly and spend the least on luxury life style as much as you could possibly. If you sign up for this industry, your career is bumpy, it has some ups and many downs, just be ready for a rough ride and enjoy occasional good times that are short and right after a big down hill.