I heard there is a workforce transformation study that is going on, which as before, will lead to at least 15% reduction in headcount. Anyone with more info on this?
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AEST?
I can confirm there is another WF study en course. This time around they are also assessing their GBC/BTC footprint and site strategy. Suggestions from external Company hired to perform the study are quite evident and if 10% of recommendations gets implemented, it will certainly shake things around.
The combined employment of Exxon and Mobil in 1982 was over 300,000. Down to 62,000. Workforce transformation has been happening forever. At the merger, in 1999, the employment was about 120,000. We had over 30 refineries...cut in half. The high cost personnnel will be cut everywhere, if the work can be done elsewhere, at a much cheaper cost, but maintaining the quality. Accounting and IT jobs will move plus lower level engineering.
#2 purchaser and consumer of RUSSIAN OIL AND GAS IS INDIA! How is that not a conflict for Exxonmobil? They pulled out of Russia but yet they are fully investing in the #1 & #2 countries buying Russian oil! Keeping Russia funded to war on Ukraine! Does anyone even pay attention to this? The cherry on top is send American jobs to India while India supports Russians!!! This is so f-c- ked up! It should be illegal!!!!
I can confirm the study OP is referring to is not just another study.
Workforce targets for high cost locations is being updated (down) and its implementation is being accelerated.
Expect 10% NSI cutoff for 2024-to 2026.
@5kok By the standards of “supporting” you seem to be insinuating, several U.S. based companies, ExxonMobil included, would also be subject to sanctions.
I haven’t seen any credible reports of India providing military support to Russia. When you find some link to them.
FYI: India isn’t “taking” your jobs away. Your jobs are being sent there by your Caucasian, greedy, middle-aged, republican bosses. Go yell at them if you don’t like it.
I hope India gets sanctions for supporting Russia and all this BTC effort cancelled that same day.
That would be so funny
@2byu+1oSsyYPA Yep, any supervisor or manager in this company can either be found at 40000 feet in a business class seat, or in India on a propaganda visit.
Don't expect them to do any actual work at any actual time...
Happy to hear that more layoffs disguised under different names are coming. Let’s have more meetings
Maneuvering for a job in Houston, got to get out of here , 08801,
The downstream VPs were just at BTC, look for an increased movement of roles and positions soon…..
OP, please don't call this thread New workforce transformation study. Call it for what it is a complete offshoring of american jobs to India because they are cheap. If they do their jobs right or wrong doesn't matter to Darren, they're cheap cheap cheap. That's all he cares about.
EXXONMOBIL RIP.
1tmq+1oSsyYPA. Not so quiet. Just look at the 100s of job postings over time for India! Wonder how that will play out over time now that India is getting arrogant and pulling stunts like not using the dollar and nefarious deeds in Canada. Tsk tsk & what a losing venture!
@1sal+1oSsyYPA you are spot on! Sc--w Americans and hih up the BTC
@2oqc Not really.
In the U.S. companies are subsidized indirectly via the tax system. It maintains the veneer of free-market capitalism while providing the executive class with an extremely generous (and bizarre) form of corporate welfare.
These indirect subsidies make up a sizable portion of income reported as profits which are tied directly to executive compensation (most of which is in the form of equity).
If you’re still having trouble with this for some reason then you should hit up Google.
:@1mw you are really reaching now with your "subsidy" examples. Mostly claims of subsidies come from folks that have no clue how large companies perform financial activities, is that you? You avoided all the examples provided in the prior comment and asked us to Google the research for you.
@1tmq+1oSsyYPA Totally, global projects is nothing but a supervisor and management ponzi scheme to further their own individual careers. They will be the only ones left, with 'work' done by Indians clamouring for the same attention. Work then done by the cheapest most incompetent Indian EP contracting companies.
@1fpe Here’s a short list, you can Google the details as an exercise:
- Tax abatements at the county level in several U.S. cities/states.
- Tax breaks for carbon capture.
- Guaranteed purchase of product by the U.S. federal government and other national governments.
- Billions in financial incentives from various national governments.
I could go on for a long, long time. Practically every O&G company and most corporations depend on large public subsidies in order to remain profitable, and your boss knows it. See item (1) for the primary reason they got rid of WFH and dragged you back to the office.
Have a nice day.
Global Projects has eliminated 10% of its HC10 employees EVERY YEAR since the layoffs, and plans to continue to do so for the foreseeable future.
They’ve done it quietly, and will continue to do so until the entire group is shifted to the BTC.
This isn’t fear-mongering… just the God Pod submitted company plan.
Master Limited Partnerships ($3.9 billion “subsidy”) – Ending the MLP “subsidy” would result in MLP’s being considered corporations that must be taxed before their distributions are passed along to shareholders. Therefore, any MLP income would be taxed at the corporate level and then again at the dividend level. Distributions to shareholders would be impacted substantially. Preventing double taxation is not a subsidy. MLPs also exist for Real Estate and other industries. Furthermore, the “subsidy” affects people across the spectrum from Pensioners, 401ks holders, to widows and orphans – hardly a “subsidy” for the oil and gas industry.
Intangible Drilling Costs ($3.5 billion “subsidy” – low estimate is $780 million) – Intangible Drilling Costs are essentially the cost of drilling a new well that have no salvageable value. Currently, most exploration companies are allowed to deduct 100% of the costs in the year they are incurred with the majors able to deduct 70% of the costs immediately with the remaining 30% amortized over 5 years. In what world would money spent that may or may not be recovered be capitalized as an asset?
Royalty Payment Reductions on Federal Lands ($2.2 billion “subsidy”) While paying no royalties on some offshore plots and reduced royalties in some regions might be considered a break by many. The incomes derived from operations are taxed at the same levels as any other income – hardly a “subsidy”.
Depletion Allowance ($1 billion subsidy – low estimate is $900 million) The depletion allowance allows companies to treat reserves in the ground as a capitalized asset that may be written down by 15% per year. The government only allows the “subsidy” for independent producers. Integrated oil companies such as Exxon, BP etc. are not allowed the exemption. Companies across the US are allowed a depreciation deduction for taxation purposes. The oil & gas industry should not be an exception.
Domestic Manufacturing Deduction ($1.7 billion per year – low estimate is $574 million) – Congress passed the tax break in 2004 to encourage manufacturing companies to maintain their operations in the US. The tax break has been extended to oil & gas companies and allows them to deduct 9% of their income from operations. Critics charge that companies would not leave for a lower tax rate. Ever looked at how much cheaper it would be to operate a refinery in another country? Furthermore, the tax break extends to companies across multiple business segments – not just the oil & gas sector.
Foreign Tax Credit ($900 million) The tax break allows US companies to deduct taxes paid in foreign countries from profits when the money is returned to the US. Of all the tax breaks, calling the Foreign Tax Credit a subsidy for the oil & gas industry has to be the most egregious. The US Federal Government allows any corporation doing business outside of the US the same exception.
@1dgn+1oSsyYPA
Name a subsidy Exxon receives and how that subsidy operates.
OP must be new to O&G.
Perpetual restructuring has been the dominant business model for nearly a decade. EM, BP, Shell, Oxy,…take your pick. They’re all doing the same thing. This is happening because senior management has no clue what they’re doing, so every couple of years they roll out some new organizational transformation (read: job cuts) to make their companies appear more profitable than they actually are by cutting labor costs.
In fact, if you remove the public subsidies, most large energy companies would almost always be operating at a net loss. Probably so would most of Corporate America.
If you don’t want to deal with this, do what many of us have done and change industries. Things are still pretty bad outside of O&G, but not existentially so.
08801 has entered the chat …
It is true, of course.
Consultants have developed the models and EM's management just follows the script(s).
Fact is - been going on for a couple Decades now under different guises. A dying commodity company gotta do.
There's workforce transformation studies happening all over the corporation. You don't need to seek info here. You can search "workforce transformation study" on the XOM search and find oodles of PDFs and PowerPoint decks on the topic. Every department, job function, and business is being "transformed". With the help of new grads at McKinsey, Bain, and BCG, management can cull as many things as possible without facing any consequences. High cost countries are under a microscope and everything that can be cut will be cut.
EM doesn’t have your back. It’s true.
It won’t stop until we have the Uber/Lyft/DoorDash model where everyone below the Corporate level is an independent contractor with no extra benefits.
Plant problems will be posted to an app and then you’ll be able to accept the assignment and the pay will already be determined for the specific assignment but won’t be issued until the job is completed to their satisfaction within the allotted time period which was determined with AI.