@4ajn Here why this perspective is worth considering:
Because when you operate a multi-national corporation that looses $8.3 BLN in a quarter, you had better rethink your strategies. Leadership is cutting costs via a modest enterprise re-org and a significant layoff of employees. Come November in many areas of the company they will not be eliminating wasteful processes or activities, they will still be paying the CEO 32 million per year, still employing many poor performing leaders, still spending company operating capital on wasteful re-branding and ill-conceived marketing (both external and internal). Still be focused on the diversity side-show that will not improve anything other than appearances. The current changes were forced by the market, not induced by leadership vision. The bold spin on their action is intended to save face for leadership while forcing thousands of employees to bear the cost of their failure to consistently run a lean org. The BOD and large Investment banks (major shareholders) should have their boot firmly wedged in leadership's pants. You can bet on this; if oil stays at $40 for another year, this functional transformation will not be enough; more cuts will have to be made. So again, I suggest leadership should trim all unnecessary costs now, to preserve OC and save jobs later. This storm is far from over.
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The biggest lie of the century: "our strength is in our diversity."
@4rnf, TLDR. And your opinionated rant is important why? Work on your resume instead of wasting it here.
The 3rd quarter will be better but probably still a significant loss. 4th quarter 2020, yep you guessed it another loss. 1st quarter 2021yet another loss. We should stop all activities that are not part of our core business needs NOW. Millions in charity to local, national and special interest causes; stopped. Employee networks; all brought to a dead stop. This club, that club or the other "waste the company's money club” screeching halt. V&V stop. Leading performance; stop. Horizons program; pump the brakes. Foundations, over. Human performance, full stop. E-colors, nope. Pathways, forget about it. And the full list of the dozen or so flavor of the month efforts that don't help to make us money right now; full stop. Get back to the core strategies of finding, drilling, producing, refining and selling oil. Keep only the most skilled individuals that we need to run the company for the next few of years to see if, yes to see IF we can even turn a profit in this new sh&t show of an economy. We have to find a way to profit under these very stark conditions. You know why? Because we are in the first stages of a very long march toward the eventual clarity that our destination is somewhere called the final phase of the energy industry; low oil demand and massive over supply. The world has more oil then we can burn for the next 100 years. The golden age of oil has shown its weariness and the evening is growing late. The executives will take the next five years to read the writing on the wall make the changes that should have been made by now. Wait and see. Chevron will fall to its knees from lack of profit, then crawl under a huge debt load towards the light at the end of the tunnel that will be so dim as to barely give off a glimmer of hope. Best to cut now, cut hard and trim all non-essential activities, programs, practices, etc. etc. Save every dime now; commit to operate within bare bones efficiency mode or else be reduced to skin and bones, near insolvency. Take your pick but the grim reaper is here and it’s called the NW0. There is a plan for oil and gas and you can bet your pension it will not another heyday for black gold.
Too Funny! ;->
Why don't we just Merge with Exxon and call it Std Oil again?
Exxon hardly ever impairs their assets. They push it to the edge concerning compliance.
Non reoccurring costs amount to $6 billion. We still lost nearly 3x more than exxon without that.
You guys do realize that much of the losses are considered "non recurring charges" (i.e. severance costs for 6000 people gone by YE20) and also accounts for -$800m in overhead reduction (payroll costs for said 6000 ppl). The NBL buy is a half-measure plug to seal the -$8.3B hole so that 2020 Year to Year results don't look so bad. CIP is still on the table, guys.
GK had ALL the power. Not even JW would stand in front of him.
@oag+16dPMsHj, where was MR. MW when all of those past decisions made? Wasn't he one the EVPs so called ExCom or ELT? YOU ARE an insider for sure... part of the establishment and dirty swamp.
Team harder
The Chevron Way!
Pretty easy to see who really needs to go to B school. MW and PB are just cleaning up all the messes left behind by JW and GK - Petroboscan, Petropiar, AMBU, Kitimat, IDD. Non-cash charges to finally recognize all the poor decisions and overspend by the last regime. Anyone who reads our financials knew this was coming. Oh, and a severance accrual to allow the downsizing that everyone knows needs to happen. You sound like someone who sees the handwriting on the wall for yourself...
We have seen in every single organisational change taken place, the upper management kept their job, their titles have changed. One'd think that, how would these kind of transformations really save a troubled company? There should be an external CEO with a good vision and understanding the business and the market to come in and change things. Consulting companies have taken advantage of the competencies of the company's executives. Mark Nelson is another incompetent leader with no Business background.
It may be very difficult for Chevron to transform itself in anyway under current leadership. We may have reached a point in time where an externally-selected CEO would add more value than our internal organic approach. If you have worked there a while you know nothing really ever changes or transforms except the composition of the queue at the feeding trough. An external pick would really shake the dynamic up. Wonder what other shareholders would think about that given the our performance and the change in demand structure.
Yes it’s the same as 2015-2016. Cut a bunch of people because we have to many people we don’t need all these people. 6 months later, oh no we need people. Staff up for the next 4-5 years.
2019-2020 rolls around. Oh no, we have to many people ROM time.
I used to think I would work here until I retired, I have 17 years with the company. I am a technical person, an SME in my field, the go to person when we have issues, and I train all the new people in the group. Currently I highly doubt I will make it through this round or until I retire in 15 years.
This year proved there is no circumstance under which we can actually move quickly.
Didn't we do the same back in 2015 and 2016??? This has become a new NORM to paralyze the entire company and k–l the moral. Time has come to jump off this sinking ship.
We are making changes that will reduce costs and aid in profitability; but doing so at a snail's pace. Tomorrow is August 1st and the "transformation" is still dragging on. We should have been all wrapped up with these changes by end of June. Acting with a sense of urgency seems to be lost on high level leadership. Lets hope that something good comes out of this in the end.
Maintained that dividend though...
Cost cutting by firing employees and losing in any environment will be remembered as his legacy.
Digital will save us
it seems like "Losing in any environment" slogan to me !!!! XOM sustained losses also but 1/8 of CVX. Board of Director should rethink about putting an engineer without a business degree in charge of the company...... every town hall he holds shows more and more of his inability to run the company....