I find it interesting XOM is Not laying off but CVX is letting go up to 20% of world wide staff ... what is our mgmt not telling us, or what does XOM know our mgmt dont?
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XON routinely trims people ranked in the bottom 10%. but usually this ia a performacne improvement process that takes several years to play out. some bottom 10% improve and are not fired. Others do not so involuntary terminations happen (maybe 3 or 4 % per year). Most of the time bottom 10% quit and find a different job. (bottom 10% cannot be promoted and no salary action also). They get the message and start looking for a job. Since XOM does not tell the world their rankings, many get jobs at other companies and many do well in a new career. But that happens when the business is booming. Those that get terminated for performance in the next 12 months will struggle to find jobs. They should have quit and gone to work for another company where there is a good chance they may be been valued and ranked highly and not lost there job.
XOM has no lay offs, they put employees on PIP’s to get rid of them. They need to offer severance packages.
It certainly does not tell you XOM is a healthier business. XOM does eliminate people annually, however, it is not the 10% referenced previously. There was a bottom 10% in the legacy ranking system, but for reasons too long to explain (yes I'm lazy), there was very seldom 10% of the employee pool in the bottom 10% (short answer is the average ranking for the seriatim had to average no more than 50.4, so if you group people around certain rank numbers, you could minimize the number of people in the bottom 10%. With the exception of 2014/2015, in recent memory, the annual reductions were more like 2-4%. However, the company is doing what it did then, they are increasing the reduction via performance assessment to 10-15% (some variation by business). This way, they won't technically layoff, but will still get rid of 7,000-9,000 people (there are ~70,000 employees).
XOM is laying off upstream/HQ/downstream, its in the works at the big "B" sites 10% of employees,
XOM does not do layoffs like most corporate. they have a standing 10% cut every year...so during time like this, they are already trimmed as they built it into their reduction/attrition plan.
I suggest you read the Exxon Lay-off Board...
Xom has a lot more contractors, also, they just tell people it is time for them to move on and. Give them a little time to find something else, this keeps them from paying severance and unemployment. Also, they have some 20+ year contractors who wee just let go, but since they are contractors it is not a layoff
It’s not 20%. It’s 10 to 15%. Exxon reduces staff every year. Although small cuts they do reduce deadwood and they also don’t have the overrun on MCPs like Chevron has, is partly why we are in this mess.
XOM is better at hiring people, they only select the best and pledge to keep them long term whereas Chevron is a hip shooter in this topic: get it done quick and move on so obviously there will be some expendables. On the other hand, XOM uses A LOT of contractors who are the first ones to go at the slightest sign of a crisis.
It tells you XOM is a healthier business.