Thread regarding CGG Veritas layoffs

Blame the merger for bankruptcy filings

When I read comments I see

  • People at the old VeritasDGC thought it was great and a company run correctly

  • People at the old CGG thought it was great and a company run correctly

In practice, independently both companies were probably great.

Everyone thought the merger was a disaster.

First we use the CGG geocluster software which eventually gets remarket'ed geovation

Then as the company were unable to get this software to work correctly at the user level and it became so complicated for the seismic processor to manage we dump this and switch to tango, so to fool the clients into thinking progress has been made and the company didn't return to the 2007 version, tango is remarket'ed as geovation2 - the next great improvement.

This incompetent chopping and changing by management causes the poor geophysicist working hard to pull the cart to need to learn, multiple geocluster levels and their quirks (3100, 4000 and 5000), then geovation1, which was geocluster butchered to try at the user level to make it work like tango and finally geovation2 (which was actually tango - where Veritas was back in 2007). How many years and how much money did management waster on making these decisions. With this the display applications kept were nearly 2 decades old.

For the processing geophysicist, with all these different platforms, 4D processing in particular becomes a nightmare. An army of programmers are kept on to manage all the different aspects of each system (more overhead and contribution to the companies high costs) and the processing geophysicist then is advised by management to lie to our clients reasons as to why we cannot repeat a 4D flow. Forget the suggestion of a near perfect repeat, the software problems are such that even a single 3D processing step may be impacted by overnight changes to libraries meaning if a production run takes 3 days to complete, the first sequences of a production run can be processed differently to the mid and final sequences. If we consider these changes in a 3D sense, most are small and would go unnoticed, out of curiosity if a processor immediately rerun the same production run with identical parameters and difference this result to the original, potentially if your module libaries were update the results are different. Therefore with this level of problem how can 4D data be processed with any integrity .

In the mean time Crawley takes its eye off the business ball, the ratio of managers riding the cart increases massively compared to those pulling the cart and with this the costs CGG charge to do business rises. Around these good times, many clients complained direct to management about CGG processing costs, those pulling the cart also fed client cost comments back to management and management instead of listening and looking at why costs rose alarmingly high blamed the clients for being cheap.

As the oil industry is cyclical, eventually the seismic processing market collapses, CGG are losing money fast, around the world management and HR decide to get rid of people, but only those pulling the cart and with appalling behaviour (most notably in Crawley - see other posts in thelayoff). However those sitting on the cart (management and HR) were relatively unaffected. In trying to protect their own jobs they did not reduce the highest overhead employees who do not bring in revenue management contributed to the bankruptcy of the company.

CGG have had some brilliant processing geophysicists, unfortunately too many of these were refused management promotions as they were too good at making money and have left or surprisingly made redundant.

If I was thinking about where to place my bets during chapter 11 and how best to protect my investment;

Where does the blame lie...

What solutions can be put in place...

If the highest levels of CGG management are this incompetent, why would any investor want to give them another go.

=> A major management clear out is required at multiple levels (managers in each of the processing headquarters and at corporate level). Will those left be of caliber to save the company.

=> Or, take what money is left in assets and move on.

Originally posted at @NN8MuHy-5cqd

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| 3201 views | | 10 replies (last June 27, 2017) | Reply
Post ID: @OP+NTLa0K3

10 replies (most recent on top)

Couldn't agree more, @6lla. Re-posting as separate thread, hope you don't mind.

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Post ID: @6crw+NTLa0K3

I've never understood the logic of buying things you already have. Merging different systems whether it's in processing or acquisition is just about impossible. The only thing you really get is more people, but only if you can keep them. Dave Robson knew how to do that when he bought Digicon (some Veritas history for the young guys). But CGG management have taken numerous viable operations and had them crumble in their hands.

Layers of bureaucrats who know nothing about the actual business, guaranteed work from the French oil companies and handouts from the French government. The market is irrelevant and man-management just means crapping on somebody else.

But I didn't think it would happen with Veritas. Surely it's too big, too much momentum. But they did it.

CGG will probably shrink back to what it always was - a just-about profitable operation in London, a bloated money losing operation in Paris, and a shabby under-invested office in Houston. Those jobs aren't coming back.

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Post ID: @6lla+NTLa0K3

It was the purchase of the Wavefield fleet that was a waste of money. CGG management seemed obsessed with buying out the competition. Left to their own devices, Wavefield would have gone bankrupt.... they could never have afforded the costs of repairs and upgrades to the vessels to make them fit for purpose.

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Post ID: @6sqo+NTLa0K3

Fugro's ships are going to save CGG from bankruptcy because they are the only valuable assets CGG have.

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Post ID: @2qvd+NTLa0K3

I wonder how many people know that CGG Veritas shortly after the merger had a processing system at the outer layer that encapsulated Tango (the Vega variant) and Geocluster, allowing any Vega module or Geocluster module to run together in the same job in either traditional single mode to run on a server or in a massively parallel mode to run on a cluster. It was real and it worked, but it was killed because both sides saw it as a threat.

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Post ID: @2hyo+NTLa0K3

If the merger was a disaster (between Veritas and CGG), buying Fugro's old seismic fleets was a clusterf--k of sorrow! It was like shot in the head.

Look where those ships are now, fishing industry ???

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Post ID: @1owe+NTLa0K3

so much hatred for CGG.

Love not hate.

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Post ID: @1ryl+NTLa0K3

The oil price has been low for three years. Most of surviving company has adapted it got more efficient. Cgg is on the other side. As a processing company, it has the most of levels in the industry and history. In each quarterly report of the last 8 quarters, the management has never talked about being adaptive to the market of oil price 50, 40, even the major oil companies thrive to do it.

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Post ID: @1nti+NTLa0K3

CGG should and must die for a good market of seismic processing and imaging.

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Post ID: @oom+NTLa0K3

I've seen senior management joking and laughing at shareholders and debt holders expense.

Why anyone would invest in CGG is beyond me.

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Post ID: @cfr+NTLa0K3

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