Thread regarding McDermott International Inc. layoffs

McDermott - the risk is not over yet

McDermott stock went by by 12 percent after the news of Cameron LNG commissioning. Granted it is positive news for the troubled project. But McDermott is not done with the construction cost overrun risk yet. Trains 2 and 3 still need to be built. Response to stock price is premature.

As a shareholder, I have lost 60% of the value of my holding in MDR after CB&I acquisition. As a past MDR employee, I have seen rounds of RIFs where people with 20-years of experience have been let go. Now MDR offices have huge empty spaces. More and more people from India are showing up in offices every day to manage the increasing amount of outsourcing ( or insourcing). The moral of the workforce is down. Management keeps changing. No executive ever steps into project offices to engage with workers. Mid-level managers are looking for exits. All top management is actively looking for jobs as it appears from their premium LinkedIn memberships. Sale of two businesses may help in the short term to reduce debt but the long term success of this company is doubtful as it may not retain a clear strategy and right people.

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| 2431 views | | 6 replies (last April 18, 2019) | Reply
Post ID: @OP+YBAX4BO

6 replies (most recent on top)

The real problem is executive pay and inequality. The CFO is just doing their job. As long as executives get paid big bonuses for increasing profits with no long term goals, it will continue to be a problem. The executives are just taking the shareholders money. A good example is Phil A. He cashed out 13 million, I think the number was. This was right before CB&I went belly up. It is an epidemic in America, not just CB&I or MDR. How do you counter it? You vote the board of directors and executive pay out. That is if you have stock.

As far as skill, it might be the way you are recruiting. Just because someone passes a test, doesn't mean they can do a job. Recruiters and word matching is just a very very small part of hiring the right person.

It is common sense, not business sense and any other kind of science.

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Post ID: @2krg+YBAX4BO

As long as CFO is running things layoffs in US will continue. Offshoring work will continue as it will improve margins. Their skill set is just as good as locals and a third of the price. The truth hurts, but it’s still true.

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Post ID: @1gsj+YBAX4BO

Maybe some more layoffs here and there, but I think the worst of the cost cutting is behind us. Chapter 11 seems to be off the table for now. So if you're really that unhappy, you have more time to figure out your options.

I think things will settle down. Nice to see some daylight. If I were a higher-up, I'd be worried. The MDR guys are probably starting to figure out who's dead weight.

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Post ID: @1sch+YBAX4BO

You unoriginal id--ts that keep copying and pasting and reposting about blue jeans and “I love working here...” must be VPs. Seen this same c-ap on multiple threads. Or maybe...your parents and you are part of the college admissions bribery scandal too.

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Post ID: @1fyn+YBAX4BO

I love working here. Where else can you be an engineer, make good money and not know what you are doing. Love it! Love America!!

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Post ID: @1kcs+YBAX4BO

On the bright side, we get to wear BJs on Friday. What, me worry?

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Post ID: @1lue+YBAX4BO

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