I hope we will find out immediately, and not be in the dark on the actual scope of layoffs for the whole duration of reorg. At least we would have a somewhat better sense of how much each of our jobs is in peril. I’ve been looking for an alternative for a while, and it doesn’t look good. I have a few years left until retirement, and at this point I would prefer to wait it out here.
23 replies (most recent on top)
I would assume average employee costs close to $300k all in. I would estimate 2200-2500 or so people based on $700mm severance. But I would expect a couple more rounds after this of the same or a little more. I mean they plan up to three billion through 2026.
2020 was 750 mil saved for a 15% workforce reduction. About 6750 jobs. @gc is on the money.
“ It’s not just base salary; it’s cost to company (more like your billable rate). ). This would include base salary, benefits, pension, 401k, IT cost, office cost etc. so average cost to company is higher so that means more”
Incorrect, higher average cost means fewer cuts required to achieve the target cost reduction goal.
It’s not just base salary; it’s cost to company (more like your billable rate). ). This would include base salary, benefits, pension, 401k, IT cost, office cost etc. so average cost to company is higher so that means more
@f5, the org changes and the move of some jobs to ENGINE are related but somewhat independent events. Some reductions will occur due to ENGINE, but some roles will be lost due to the changes without being offshored.
It’s difficult to estimate how many roles will be lost, but we can make some guesses based on the ~$715MM charge incurred in q4 for redundancies. I believe to be written down in advance they have to be incurred within twelve months, but finance types can chime in there.
Now let’s assume an average base salary of $150k per annum, and assume an average tenure of 15 years. Assuming two weeks per year, and other charges, let’s round up to $100k. That’s approximately 7,000 jobs globally on the line, or 17% of the workforce.
However these losses won’t be incurred evenly. Some BUs and functions will incur higher losses than other functions, particularly if they are in scope for ENGINE. Some BUs and functions are leaner than others. So expecting anywhere between 10-30% depending on function and BU doesn’t seem out of the question.
Correlate those figures with where you have seen the most changes in leadership recently to get a sense of those that will be most effected: OPG, CTC/IT and Finance come to mind.
What’s the employee count today vs after transformation? (Hint - it’s up - and not just due to acquisitions).
Senior leaders should be held accountable for the lack of discipline in organizations where headcount metrics are in the wrong direction.
What’s the total employee population in the US?
People are losing their minds. ENGINE is starting with 600 people of numerous disciplines. More will be added in time, but Chevron has about 40,000 people currently excluding gas station workers. These "predictions" or 30% or whatever aren't sensible in the least.
I dunno what would Exxon do?
If the current employee numbers are 45,000 then at least 10,000 will be laid off. But the focus will be in the USA so the percentage will appear higher since the impact will be in the US.
75k is what i heard.
~30%. Take it to the bank!
Don’t look at your salary alone. You should look at cost to the company, more like your bill rate.
I would say target would be 2000 this year, but would continue every year through another 1000 through performance evaluations.
Been told 30k. Everyone who wants to go should be paid out.
If we make more than $350k are we safe?
It will be between 6k to 10k in the period of 2 years it will not be quick, $2B structural cost savings for average employee compensation of $250_350k will get you around that number in the ball park.
Saying 20000 without any explanation means your coming here to bs. But doesn't anyone actually know what the real range will be?
Back of the napkin math says 10k.
20,000 or more. no brainer.
10000 seems way too high. I expect 5 to 6 k
about 10,000
It won’t be right away because they need to see how many people are raising their hand. However, if they are looking to get rid of you, you’ll know pretty quickly.
Now that is a great question.