Supply chain is especially needed in this environment. The reason for supply chain is that engineering got too cozy with suppliers. No drawings, no control, run-away costs. And let's not even get into single source suppliers.
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Headcount will be less than 65k by year end. Supply chain will account for 35% of the company. We will be able to procure inefficiently but do f--- all else.
20% would put us at 18k let go, I'm guessing we'll get 6k in q1 and another 6k in q2. Remember, management and the market as a whole still thinks things will rebound late this year but Iran still is going from exporting nothing to 500kbpd to 4mbpd. Waiting to see if we hit storage capacity or what. Think of how many zombie companies are still left too. How the heck is CHK or Sealdrill still around with having more debt than fair market valued assets and being negative cash flow. This has been going on for years, just declare bankruptcy and get it over with.
Shared services was this week, next week they start hitting field locations. We're still at 90k employees though too and before Smith and MI were 80k. Peak appeared to be around 128k. So judging by work amount and rigs things should be able to go down to 60k tbh. So another 20-30k could be let go before things are inline with active rigs.
When is the next wave?
20% isn't close. 35% reduction to get close to staying ahead of rigs.
Q2 is ugly as Paal said. People without high revenues should worry.
20%