I think we all have to come to terms with the fact that the Oil industry is no longer the premium industry to be part of. We can sit here and complain that we are being treated badly, but the remuneration people have received through their careers with Exxon, has been far better than average. Everyone has known for years that the dividend is key and the company would do what it takes to cover it. We can complain that the company isn’t treating employees fairly, but the simple matter of fact is the company is not making money. The short term outlook doesn’t look positive either so the simplest way to cut cost is to cut staff. We can’t sell assets easily at the moment because there aren’t any buyers. If it was your company and you were haemorrhaging money every month, what would you do? Unfortunately these are the harsh realities being played out across every industry sector currently. I wish everyone the best for the coming months
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The industry is in an extraordinary slump and must reduce costs to survive. Further, companies must adapt to operating with a much lower price outlook for crude and natural gas,
Even if the dividend were cut in half, does anyone believe that the layoffs wouldn't continue? Yes, the company would have more cash, but it doesn't change the reality that companies need to be much leaner in terms of staffing, and employees are being viewed as much more of a commodity than a strategic advantage.
A dividend cut is not the panacea many seem to think. Not much would change, other than even more pressure for the company to perform better.
Yes, the O&G industry pays well, but you can't compare pay scales at EM to other industries. An engineer will make more than a cashier at a big box store. But within the industry, EM does not pay far better than other O&G companies.
EM did not create the oil price slump, Covid or any other events impacting oil price. Agree you can't blame EM management for that.
BUT, EM management IS responsible for guiding the company thru difficult economic times, and facts show that EM management has UNDERPERFORMED our peers significantly.
EM way overinvested the past few years assuming oil and gas prices would remain high. Others were more cautious and had contingency plans in the event prices and demand fell. EM has created a toxic work place in how the downsizing is being handled, while many other companies have been much more fair and transparent.
Everyone in the industry is suffering, true. But EM management must be judged by how well they handle it and position the company for recovery, and on those criteria, they are failing.
Replying to @udq+17I4uj9q
I agree 1,000%! The way this has been handled is ridiculous. Actually, shameful.
They hired smart people. We know that giving RE's 4 months severance was the cheap way out and then restricting everyone above 52 from the "involuntary" package was another cheap way out. How many of the involuntary are going to have decades of service to claim the 1 yr severance? Not many. And, how many of the involuntary won't be 5 yr vested so they won't get a dime of any pension contribution? We aren't dumb. It is like when someone lies to you, the part that makes a person angry is when the person lying to you thinks you are stupid enough to fall for it.
Just be honest. You don't care as much about treating the employees like Chevron, BP, or Shell. And, I would like to see the Executives skip their bonuses this year. Even just one of them...they need to show some compassion.
To save costs, ExxonMobil could get rid of all bull-sh–ters like SLSs, their bosses and their bosses. Take the process control group for example in BTES. There is a SLS for both applications and systems, then their is a process control department head, he reports to another crony whose hair looks like he is a specialist men's barber in Hollywood and there are more people at the top - all useless managers doing nothing useful! I started my career at Dupont, then joined Union Carbide and then Mobil. There were no such managers. When I did a DCS upgrade project, there were 5 engineers and 6 managers/supervisors/b—s—ters. Can you believe??? 6 chiefs and 5 Indians!!! Yes times are bad, need to cut people, but cut the deadwood! Not the lifeblood of the company. Remember American companies grew because of engineers and then came managers. But Exxon has it upside - they have all focus on managers not engineers. Really tell me what will be the loss if all the SLSs in Baytown got chopped? Dupont is run very well, no SLS is high heeled shoes is needed to check magnetic card touch to door and concile with the timesheet. The SLS job is a secretary job and should not exist. The VPs are protecting their jobs, the managers are protecting their jobs and the useless SLSs are brown nosing the managers who are protecting their jobs. Yes Darren, to cut costs the most and look good, do another smart thing - lay off 100% of engineers and keep all the SLSs and managers and the stock will return to $105 and you will be genius.
Most would agree job cuts were inevitable. The issue is the manner in which the company pursued employee reductions. They inflated the NSI category at the last minute to use the appraisal system to reduce a couple thousand employees without severance. Other companies like Chevron just declare a layoff and pay full severance to all affected.
Oh well, at least those impacted involuntary in the upcoming phase will receive an actual severance for their contribution to workforce reduction.
I don’t think people are upset about being laid off as much as they are about HOW it’s being done—very unscrupulously. If nepotism wasn’t a thing, I figure a lot more people would be “understanding”.
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