I read that XOM is suspending their 7% match starting in October. Odds Chevron does something similar? An 8% paycut would hurt.
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S—s for people on the new pension system.
5% is better than 0%. Seems like a reasonable measure.
Correct. And a salary and promo freeze is in the works as well. Surviving the Great Purge is just the beginning of a long downward spiral.
There’s a rumor in San Ramon circulating at higher levels of the company about the Chevron 401k match being lowered to 5% for the beginning or end of 1Q 2021. I heard this from 3 completely different sources in the last 2 weeks.
Xom here. The 401k match is gone October 1, basically a 7% pay cut to those in the US. We are told this is temporary, but for how long, no one knows. Voluntary Redundancy Programs have been rolled out to employees in Australia. HR and mgt team are looking at each country to determine staffing and redundancy programs. Europeans are less likely to be effected due to strong labor laws.
For the US, I expect more Redundancy after Nov 1 as this is when the 1st round of assessing low performing personnel will be complete. The majority of contractors were released in March and April. I am hoping for an early retirement after Nov 1. At 58, I am close enough to be able to leave. My performance assessment is quite high and I enjoy my job.; I wouldn’t mind hanging on until 60 or 62, but a package would certainly get me out the door.
Best of luck to our friends at Chevron. There are lots of wonderful, productive people in both companies. If you manage to hang onto your job, keep improving your skills and the value of your contributions. That will be what keeps you employed, as I expect this recovery will be long and painful.
Everything will go to save the dividend might take a little longer but CVX won’t keep paying benefits no one else does. For those that made it to the end congrats the gates open to you for those of us who will never see it there will be great sorry and gnashing of teeth. For next year I expect a pay cut as health care costs go through the roof with COVID. Also out health care has gotten worse more expensive for less benefits.
I anticipate the following:
1) Chevron will be last-man-standing to cut the dividend. CVX has THE strongest balance sheet.
2) oil prices will recover over next 10 years ... what other energy source will be available to build the non-hydrocarbon vehicles, etc.
3) CVX needs to cut 35 to 45% staff to match strategy
4) CVX will start hiring again in 2 years
5) if you think 401k will not go away at Chevron, then you need to Google "Biden eliminates 401K" ... Dems policy is to tax - tax - tax, and 401K delays taxation, and they will change that! Future generations will be on their own and at the mercy of the government, another policy of the DEM's. Look at the socialist countries in Europe - how many retirees can afford to take vacations ... very few.
6) Next year, expect benefits to be reduced at CVX. I expect pensions will go first, then followed by matching and then salary reduction.
Yeah right, “the dividend is sacred”— ‘till it’s sacred no more. Time and pressure, that’s all it takes. After enough time and pressure, the dividend will eventually fall. We’ve seen several examples just this year alone in the O&G. The 401k match could be the first to take the hit, but if this company continues to shrink and oil prices don’t rise by mid year 2021, the dividend will have to dealt with. I see it coming.
instead of "super lean": it's "adequate for the tasks at hand"
instead of "anyone who can fog a mirror" its " it ramps up numbers a bit"
As always hyperbole are the norm, you must be in marketing lol good riddance
Exxon runs lean on super high quality staff and does not need to lay off. Chevron hires anyone who can fog a mirror when prices are high, then slashes and burns when prices dip a couple dollars. The rollercoaster approach. Management by panic and frenzy,
The dividend is sacred. MW will do anything (Layoffs, benefits cuts, outsourcing) to preserve the dividend and the vanity of not cutting it. He will retire rather than cut the dividend. If oil prices stay low into 2022, expect that to happen.
It seems very likely. This is an easy way to save 8% on most US staff. The next will be ending the pension. Most large companies did away with it years ago and the oil majors held on due to $100 oil. This likely wont happen until after the layoffs, but will occur sometime early next year.
@1ghr, Let's face it, you are not a leader nor innovator. But you do like to get hired on at a low level position at a major corporation so that you can insult and criticize those who are, something that you are not and will never be. Just pray that you don't get cut and that CVX keeps the match. Having your hand out for those bennies is as close to the leaders and innovators that you will ever be, but I suppose you can always dream. Good luck!
I'm speculating that no way Chevron cuts this match in the foreseeable near time (12 months?) future.
All bets are off if crude prices plummet or pandemic battered economy worsens.
Until then relatively strong balance sheet (lower debt ratio than other majors) will not force these type of decisions.
If Exxon does cutback on their 401k contribution percentage, then you can expect Chevron to do the same. Let’s face it, Chevron is not a leader or innovator. They follow other oil giant’s ideas and try to match the successes. Chevron has bloated their workforce over the many years, that’s why the higher headcount being laid off. But if Exxon is in fact cutting their 401k match, then Chevron will do this as well. Complain if you like, but it’s a sign of the times.
Chevron is currently laying off 25% as part of a long planned reorg. Exxon got caught flat footed in this unprecedented price downturn and is now catching up by laying off 15% (while pretending its business as usual) and doing other creative book manipulations (employee benefit and stock support pull backs), Chevron has the cash on hand to start buying the fallen, has significant room to gain more leverage, and one can predict many more bargain sales before this dip is over. We will see who "wins" soon enough. From my view Chevron looks strong and we currently rate it a buy, and Exxon a hold. Your mileage may vary.
Chevron is laying off 15% of the workforce while XOM is not laying anyone off. Personally, I think MW would just lay off more people before cutting pay.
Of course anything is possible, but someone asked MW this question at one of the town halls and he said we are not going to cut benefits. Our staff cuts are much bigger than XOM’s.