What does it mean? - additional jobs cut?
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Go to the benefits web site and review the total benefits letter they just updated this week. Then add in Class A office space, parking, computer equipment, training and travel for a year. There is your cost. If you are 15 years, double it for a 30 year person. Mine is seven figures and I am well short of 30 years.
I don’t what BU you work for, but everyone know makes well over $100k AND RSUs. I would not work for a firm that compensated anything less. No low expectations. Chevron is world class.
@3mmb thanks for your thoughtful response.
It wasn’t an assumption it was an estimate. I’ve been working for the company for 15 years and I understand generally what exempt (salaried) people are being paid
and the associated benefit costs to the company. We will see this fall but I suspect those numbers won’t be too far off.
IF you assume $50k per employeee it is 18,000. If you assume one million per employee it is only 1,000.
If you use a moderate estimate of $165,000 for the average cost per employee (including salary, bonus, 401k match, pension and all benefits) with a reduction in staff of 6,060 people you can save right at a billion dollars in Opex annually. I don't mean to be cold-hearted but we all know what is coming this fall.
OPEX budget cuts impacts current and near term expenditures, like personnel, salaries and day to day operational costs. CAPEX budget cuts impacts long term expenditures on capital improvements and growth projects. No matter what budgets are being cut, when you are being told that cutbacks will go into the Billions, it boils down to one common denominator— employees will take the brunt of the reductions.
They said $2B additional cuts in Capex (on top of previously announced amount)...and $1B cut to OPEX (salaries and wages included) which had been pre ious.y announced.
They already announced 2 billion previously and the majority of that was from MCBU’s budget. I believe they’re trying to cut an additional 2 billion for a total of 4 billion. Not sure but I would expect that the additional 2 billion will be spread out across the enterprise. Marching orders are basically don’t spend a dime if you don’t have to.
If it’s capex as opposed to opex I’m thinking that it wouldn’t necessarily reflect more personnel cuts
The comments were not clear whether it was the same $1 billion or an actual additional billion to make the reduction a total of $2 billion. My prediction is around 5000 people for each billion or about 10% of the total employees. It may be reduced some from EOI but not sure. They are laying down a lot of rigs. Not sure how much that plays into it.
It's every man for himself.
Yes, likely even MORE cuts than previous estimates. Ships are sinking everywhere. I laugh every time there is some BS ad campaign: DOERS, The Human Energy company. Revenue falling yet dividend is unchanged. All under the assumption of $37/bbl. This company does not care for its humans.