IMO all the fear created will vanish soon.. The 30% and 20% and what not.. this Reorg won't be too different than all others we have seen.. about 5-8 % reduction.. most of them EOI. Engine's impact will be gradual .. in 26-27 and beyond.. for now it will be minimal about 500ish jobs impacted. Get back to work everyone after lunch tomorrow.
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Our GM said the goal is to figure out the new org designed in 2025 and then staff it from the top down during most of 2026 in bimonthly waves with a goal to have it all completed by Thanksgiving 2026. Everyone can relax for now.
@h5+1jkvrpk5w You must not have been at the town hall or read the press releases...15-20% cuts. And what they aren't saying is US cuts will be higher, to offset hiring in LCGs. The OP's 5-8% couldn't have been more wrong.
NO, OP was right on target. Very good prediction and pretty much spot on. They must have been through the last couple of layoffs or talked to and ol-timer.
Bo-m, OP was wrong as expected...
The Axeman Cometh. Swing baby swing!
It's going to be WAY higher than that, IMO. It's not just ENGINE...even though they are planning on 10x the size they are building now—more shared services to BA (already planning on moving a lot of finance there) and Manila. What you are skipping is that it will not be a 1:1 with India blue badges. Their remit is to streamline and AUTOMATE workflows. The more consistent global processes, more AI-driven automation and 'agentic AI', the fewer people needed to do the work. Newer types of AI agents provides a way for machines to work more autonomously. You set the goals, and provide access to the systems, and it can work with its own agency, making decisions, and working autonomously. The future of work is changing dramatically. I don't say this to be dramatic, I am a supporter of AI and I suggest we ALL learn how to work alongside it. That is the only chance we have of being valued in the future.
The company has already booked a restructuring charge of $740MM. At your estimate of 8% of the workforce, that’s around 3,600 people - which equates to an average redundancy $205k, which seems too high (unless they expect a disproportionate number of long tenured employees to be terminated or EOI).
We also need to consider that ENGINE plans to recruit 6000 in total. And Manila and BA are already on a hiring spree.
So I think 6-7000 in total is not out of the question. The bigger question is: over that period of time.
My feel is it’s going to be big in the short term because: offshoring of jobs to to India, BA and Manila, the move out of San Ramon, and a change to the operating model. I also think that a smaller reduction wouldn’t necessitate such a protracted wait. That we’ve been waiting six months for any news shows that there’s likely a significant amount of complexity involved in the near term, more than you’d see if it was a small number of roles being impacted.
Manila and Buenos Aires are already ramped up.
They’ve hired people just sitting there waiting for people to be laid off
Supply chain 60-75% cuts.
HR 70-80% cuts.
Performance engineers 30% today and transitioning to 100% in two years
Drilling engineers 20-30% cuts.
Completion engineers 25-35% cuts.
Tech services 80% cuts.
Digital engineers 100% cuts.
If you can write a process for your job you’re gone. Good luck have fun in the new chevron.
50% CTC for sure
You’re coping hard.
@a1+, So it's an issue for you to show up and do your job? good to know. You know where the door is.
Nobody has mentioned the number of employees replaced with MSP and contract resources. The Engine is not the only place to backfill US employee positions, the MSP and contractors will be used to absorb the empty positions until the Engine, Buenos Aires and Manila can be ramped up in 2026 and beyond.
The target is about 1 to 2 Billion dollar structural cost saving, do the math, average Chevron employee costs about 250K [benefits and pay], so the number could be between 4000 to 8000. Does it all come from the US, perhaps not, but most likely big chunk of it will be US based employees. If you are still delusional, good for you, keep dreaming until being axed.
Wrong. It's like you don't work here. It's not only about numbers but a whole new org design structures, more centralized and less siloed business units. If you make it, you may not like where you land or the way it will look.
Totally wrong. It will be a restructuring of the organization. Fewer jobs, more centralized.
That math doesn’t math. The severance reported to Wall Street was a lot more than what would cover 8%
I guess we’ll see. Hopefully we hear something of substance tomorrow
Sounds about right to me. The 600 new Indians, working across numerous disciplines, aren't displacing 30% of us. Some of the headcount reduction will come with not backfilling jobs or hiring in the future. I would be more concerned with another id--tic back-to-the-office effort.