I am curious what people's though are on the number of layoffs that will occur and the date corporate will be back from working from home after the COVID-19 crisis.
Example: 3000 June 1
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Can’t you find out by checking the WARN notices on the Texas unemployment website? They are required by law to give 60 days notice of any layoffs and all the companies laying off have posted notices on the website. I don’t see any notices from Chevron so you’re all good for the next 60 days...
Well, Einstein, the larger the cut the more likely it is your job they cut. Hello?
As long as it is not your job, then who cares?
I'd say about 15-20% of the work force the same number as in 2010. More skewed toward middle management positions. They already said they would try keep positions where the expertise is. Ie experienced operations staff, rather than managers. BTW 15-20% of 48000 is 7200 - 9600
Coming Monday
Assuming half the opex but is people (rest is contract services like boats, trucks, choppers and chemicals), and an employee costs $350k then the cut is 1500 heads. Some cuts could come from the capex cut but most of that is MCBU who despite cutting their rig lines in half say no staff reductions are planned.
@2awr, Thank you for trying to apply some logic in estimating the possible headcount reduction numbers, but please understand Chevron doesn’t often use such logic in times of crisis. The number can be 6000 or it can be lower or much higher.
OPEX savings target was $1bil. I am not sure average cost of a full time employee but let's guess with benefits its $175k. That would be slightly under 6000 jobs. I think it will be in range maybe slightly higher given the change in commodity prices. Hopefully Russia and Saudi come to some agreement soon.
Who cares...it is just a job.
If you have been around a while you should have worked out this industry is cyclical and oscillates between lofty ambitions and brutality. We all should have been prepared.....if not financially at least psychologically.
Layoff will not happen in GOM
As Wittgenstein quoted when all seems a bit unclear, ‘light dawns gradually over the whole’ or was that his alter ego.
- 00 April 30th
If you would have asked me 2 months ago I would have said 5% of work force.
However this last two weeks has been like a 1-2 punch for the oil industry. When oil prices drop, the focus usually swings to refining. However, with COVID-19 demand has dropped... there is no where to sell our product.....
You can’t keep a refinery running if you have no where to put your product.
If things don’t change soon I think layoffs are going to be dramatic. Maybe 15–20%
This is global or Houston only?
5000 or about 10%. This year. Not sure when. October sounds possible.
You people are sick for working in such an environment.
There won't be a sudden layoff. After EOI folks are identified there will be a selection event around October. Too soon to guess numbers. Lower interest rates will fatten up some lump sums though.
You are correct about the Pioneer boxes. That is a sure giveaway. Also, layoffs actually do occur on Wednesday. If Houston gets hit hard, then the layoffs will likely be staggered over 2-3 consecutive Wednesdays because of the time it takes to process each departing employee. One more thing. If you show up and see a line of cars parked outside the building and increased building security with several HPD officers, then it is definitely going down. Take a breakfast break in the cafeteria and go slowly up to your office.
Don’t guess. Check with the procurement officer in CBRES. The number of laid off employees is dependent on the number of white Pioneer moving boxes they were told to order. As for the timing, the next Wednesday after arrival of the boxes. I have a buddy working the building’s loading dock who will give me ring as soon as he sees them arrive.
Agree with first response on both counts
May 15
6500
Layoffs typically occur on a Wednesday. If nothing happens on a given Wednesday then you have one more week of employment. Number of people let go can easily be anywhere from 1000 to 6000, but who knows?
July 1
3500
June 1
3000
6000 June 1
May 1
4000
May 15
13500
44,999 - Oct 1st
6,500 - May 15