This is but a normal and very predictable cycle in the oil industry. Y’all worried about your cushy jobs should have prepared better.
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The only low performers leaving are the ones on the spectrum who don't know how to kizz-azz and play the "su-k-up game". Remember this when your walked out with that shoebox in hand and one of the no-loads who is related to a director takes yer desk...
@a8+1jm2wa5g5
This reorganization is not about reducing the low performers. This reorg is about shifting the employees to lower cost countries. The largest number of employees laid off will be located in the USA and Australia. Then the work will be transferred to another country, e.g. India, Philippines, Argentina.
If you are in a support job role like HR, Legal, Supply Chain, IT, Finance, etc. most of the job positions will be moved to another country within the next 1 to 2 years. If you are in a BU then the BU's will also eventually lose job positions because the Executive LT want to move to a contractor model of staffing. Contractors are expensed differently than employees because expenses are written off on taxes in the year the costs are incurred vs. employees have medical benefits, pensions, 401K's, sick days, vacation, life insurance , training costs, etc and these costs must be accrued and carried into future years.
If you look at business models like Uber where there are few employees and the drivers are contractors the profits are higher because the contractors are an expense.
If you are a engineer in the production or downstream then you may be less impacted this year but eventually many of those jobs will also be contractors.
There is a change in corporate America and the goal is to increase profits, lower costs and reduce liability. The golden age of the American worker is gone and the new model is contract workers, aka "gig workers".
Dram Queen is a Beta male Chevroid.
Dram Queen: A person who reacts theatrically to minor difficulties using clothing and behaviours of the opposite s-x.
The company has undergone this type of change almost every 5 years (2007, 2010, 2015, 2020 and now 2025) with other BU specific downsizing in between. This is an opportunity to remove people who should probably have been let go, without going through the tedious process of getting someone fired. Then there's the EOIs and any positions that exist but aren't currently filled usually get removed from the organization. In the past reorgs this has taken care of a pretty good chunk of the 15-20% reduction.
Why are you getting laid off at Chevron:
The No. 2 U.S. oil producer has faced production challenges including cost overruns and delays in a large Kazakhstan oilfield project.
Meanwhile, its $53-billion deal to acquire oil producer Hess and gain a foothold in Guyana's lucrative oilfield is in limbo due to a court battle with larger rival Exxon Mobil, which has outperformed it with production growth, achieving record production in Guyana and the biggest oilfield in the United States.
Chevron's organic reserve replacement ratio (RRR) is below 100%, which means the company is depleting reserves faster than it can replace them. The company's oil and gas reserves have declined to their lowest point in at least a decade, further raising concerns about Chevron's long-term prospects without Hess.
The company's RRR has been below the breakeven requirement for the past three years.
Chevron’s shares have fallen behind that of its chief rival, Exxon Mobil, over the past few years. Its annual profit last year fell to $17.7 billion, down 17% compared with the prior year. At the same time, it spent a record $27 billion on dividends and share repurchases combined.
The company still wants to pump one million barrels per day out of the Permian Basin, where it drills most of its wells in the U.S. But it is shifting its priorities to focus on wringing cash out of the oil patch, rather than pursuing production growth alone.
Simply put, Chevron is cutting costs by laying off people. It is an excellent short term solution with big long term negatives.
This is my first time going through a layoff cycle. So yes, its a tad concerning only because i dont know how the selection process will be. if its strictly low performers going out the window, then theres no issue here, bring it on. But if its a random selection, thats just diabolical.
Anyone know what Hamroic W. Means?
There is nothing normal about this. Our stock is almost at ATH, and we have record production. This is a structural change both for CVX and the industry at large. We are an industry in decline and grasping at every straw.
Yes and no OP.
The bo-m/bust will never end. People too fragile to handle that shouldn't be in this sector.
However, this is a seismic shift, offshoring our intellectual capability to India. The management consultants have effectively convinced the ELT that there is no difference in work product outcomes. The consequences will be immediate for some and long term for others.
It's hard to conceive that employees are judged on merit, indicating there are differences, yet we conveniently ignore this at the macro level when offshoring positions.
I have a few good developers in India, but they carry the weight of those that are clearly not up to the task. We have poor project execution and having to redesign something for the 3rd time nullifies the specific role savings, AND causes even more financial impact on business functions that are delayed because of it.
I don't know how to frame the impact of offshoring petrotech positions. I see costly mistakes and further project delays, things we already contend with.