20% is a big number. Exxon did its last major cut during Covid. However, just after Covid, tech companies went on a hiring spree and then had to lay off big. Tech is still retrenching.
Did Shell too overhired? If not, why the cuts right now? The oil industry is not doing that bad.
We overhire and underfire. We let the deadweight pile up until the next reorg.
So true @2kly+1uw8990D
Thanks for the chuckle!
Shell had to overhire because it’s only allowed to hire technical staff in Bengalore. For every US/UK/NL tech person being laid of in reorg, you need 4 new indians to catch the workload.
Shell trimmed during covid as well, each upstream department had to trim by 30%.
Shell kept too many people every time it divested an asset.
To get a promotion, you need to lead a team. The bigger the team, the better. This incentivizes managers to hire and build empires.
“Show me the incentives, and I’ll show you the outcome.”