Anyone know what this means? What they are studying?
As you also may have heard on the call and from your management, study work is underway to assess the potential for further reductions from structural efficiencies and lower activity levels, and includes an evaluation of workers requirements around the world.
Calling it... This person doesn't know what they are talking about
Source for ksa breakeven price
https://www.statista.com/statistics/1106014/saudi-arabia-breakeven-oil-price-by-account/
Dude, ksa needs over $80/bbl to stop bleeding their treasury. Especially since they keep cutting their own crude runs to prop up the price.
Not calling $/bbl; KSA needs around $55/bbl to break even with all their social programs to keep their people from revolting (incidentally? thats the break even price at the permian), but KSA cost is under $10/bbl, so plenty of room to manouver; not so for frackers.
Calling XOM stock single digits ($9/share) by YE21. Source: GE collapse, Kodak collapse, Xerox collapse, Titanic hitting the iceberg ... we are on a death spiral. Get out if you still can
They have been on a major hiring spree over the last couple of years in the U.S., maybe they had a need to fill up the Houston campus. This scenario has been going on for many, many years....they will lay-off (remove bottom 10%) and off shore jobs. Then managers and staff will start complaining that it is taking too long to get work done and they will start the aggressive hiring again and moving expensive expats all over the place. Duplicating the positions they had previously sent offshore. Then they run in a bind and they cut back. It seems the problem is when the company is doing well, they need a strategy to not allow it to get too fat. A lot of good people are being let go, it is not because they are dead weight, but because the company brought in too many people when it should not have.
People who are calling $60 per barrel by early 2021 needs to study more
If $40/B and covid demand destruction were in the plan in 2017. We would have cut much deeper then. Company is responding to unforecasted business changes. We should probably cut as deep as BP, CVX and RDS. If XOM ROCE drops below the RDS, CVX, BP and TOTAL there will be dramatic changes. Exxonmobil still takes pride in ROCE. Watch out bottom third MPT and executives. Pray for $60/B oil by early 2021.
They are saying more cost reduction, more asset sales, more reduction of capex, more headcount reduction, maybe salary reductions, lower salary curves, less frequent promotions, lower travel. If it involves Dollars, then it will be looked at. In prior downturns, in 1980s, 1990s and early 2000s merger. We looked at everything and everyone and everyjob. There are lots of people with nothing to do, there will be study teams going on everything. No rock unturned. Get ready for more change and turbulence. It will be hard work and gratifying, if you survive. Those with bad attitudes, like those who post on this board will not be at XOM within 3 years.
The Board reviewed and supported these actions. Shareholders overwhelmingly reelected Board including DW in May. Board is aware of what Chapman said and know they will be reviewing next steps again in November. If you are worried, quit and go get another job.
Planner position was made up job. Instead of planning they filled and made everyone fill useless excel sheets and made power points and charts. These guys were such id–ts that they couldn't understand the difference between a person who acts like an administrative assistant and errand boy for an ineffective manager (these guys) and people who have visions to make plans on their own (this is alien concept at ExxonMobil).
Look at every single one of the people who participated in planning roles specially at. URC, CSR, and the Development Company. These lame people will never get hired anywhere else. This is why their only option is to keep believing and championing stupid things.
How many people think all we will do is lay off another layer of management? It seems we will be cutting well into next year. This didn’t just start. It’s been in the works for a while.
That's a very clear message from the CEO: US emps, better polish your resume now! It's that crystal clear.
This is getting good. Real yammer just needs some gifs and we’d have a neighborhood FB page.
Because we hire smart people and make them do really stupid sh–.
This looks to be a sad end to our reign of being the unquestioned leader in energy. CVX market cap is within 10% of ours. How did this happen, given that our staff and talent are clearly superior?
Amazing! Real Yammer is faster than me catching up with the emails! It appears that he is setting us up to be prepared for more “unfortunate” cut.. fortunately for him, he will be taking his salary (perhaps less bonus to buy that sweet new castle this year).. this guy is a joke..
Basically look at how EMIT is staffed between US, GBC, MSP, and that will show everyone else what they have to look forward to.
Sure you are. With new system, you can be easily pulled into NSI between cycles.
No such luck. I’m highly ranked. You know why? Because I actually know this business. And when I decide to leave, it will be their loss not mine.
Yes. Here we are. And guess what, there you go, right out the door. Somewhere else. Hope the PIP treats you well!
To the planning jackass. The industry went value over volume when they learned their lesson in 2014. Taking the “long term view” is not a strategy, but just a BS talking point. Lol. But whatever. Here we are.
Planning was on point for the growth strategy. Unplanned business disruptions have a way to change things.
Don't be a d–k because things change and become negative.
“Obviously, the posters here have never been part of the company planning process or helped prep for the quarterly board meetings or the annual investors meeting in march.”
Oh great here comes a planner “Mr/Ms feel important”. Trust me your kind is the worst part of the company, who has extremely limited business/operation exposure but get promoted to positions you don’t deserve just by getting cozy with big guys.
By the way, didn’t those “part of the company planning process” come up with this brilliant huge growth strategy not so long ago? How did that turn out?
“Obviously, the posters here have never been part of the company planning process or helped prep for the quarterly board meetings or the annual investors meeting in march.”
Hey, jackass... glad you got to do a rotation in planning for some of the senior douchebags. Bet you feel special. But that does not make you some superior thinking individual. I’d argue that experience made you disconnect a tad. When you’re ready to retire, just remember they aren’t anything like you. They’ll be in Martha’s Vineyard and you’ll be running calculations without you Fidelity investor wondering if you can afford the extra trip to see the grandkids.
I understand the how let down people feel, the company has done a lousy job recently communicating and many people feel betrayed by it seemingly diverting away from the core values it has lived over 30 years.
That said, the company’s cost structure is too high. All the metrics in which we used to lead the class each year... we are now lagging.
Some of this is down to poor strategy/management decisions but some is simply down to using high cost locations where our competitors have outsourced, moved to low cost locations or simply automated.
We are in a commodity business where the price environment is low and we need to cut costs.
In December we will see executives getting less equity and cash bonus compensation. Executives will get far more than a 7% cut plus they also lose the savings plan match. I expect Williams, Chapman Woods and Swiger compensation to be down 3 million or more
What's TMTS?
Obviously, the posters here have never been part of the company planning process or helped prep for the quarterly board meetings or the annual investors meeting in march. The strategy is now being prepared and revised for the new post-covid and low oil price business environment. This will be a smaller and more focussed company. More efficient and lower cost. Support costs like IT, HR, Real estate will be reduced. Responsibility will be pushed down to lower level and lower cost employees. Fewer management layers. MORE EFFICIENT and LOWER COST. There is already one fewer Upstream president. You do not have to rad between the lines. More changes are coming.
A) Darren Woods does NOT write these emails. If he does... clearly he’s a robot sociopath lacking any sort of personality or human feeling. Some poor communications advisor wrote this and 20 lawyers reviewed it.
B) “Work study” translated means consultants like Bain are going through org charts and identifying duplication (to eliminate), what can be outsourced or moved overseas. I literally watched this go down before at another major, during another downturn.
C) You are just a number. Inmate 3525797. The Warden has spoken.
Intranet search HW3 and TMTS. Plant engineering jobs about to go bye bye.
HW3 .. search on the intranet. Moving work to bsc’s.
If you landed in the NI or good category get your resume ready
Quote “These are not easy decisions; they will personally impact many of our colleges and friends.”
So they don’t impact Darren or his team so Awsome!!!! What about executive pay cuts and suspending your stock options A$$hole!
For those that want to read this c-ap.
https://upload.vaa.red/2ch3Vg#c1b012b92fb383c16d5b4f7c6c0b6447
You’re overthinking it. He’s expected to talk this way. What it means is cuts cuts cuts.
How many jobs are going to move to the Bangalore Technical Center? That would be a big cost reduction and I'm not sure the execs have qualms about doing that.
Cheapest way to get rid of employees is through the Performance Assessment. Cheap and easy and I’m sure Darren Woods will proudly say he invented a force group ranking system that works, and much lesser management resources are needed.
The same thing Neil said in the earnings call.
Read in between the lines. After the PIPs (Oct 31st) are done we will then lay-off more but this time the management layer.
Neil Chapman – Senior Vice President
Yeah. Yeah, Stephen is right, Doug. And I would tell you that this evaluation that we're going through as part of this year's plan to set up our cost structure for future years, '21 and beyond, we are looking at very significant efficiencies and lower operating expenses. And I know you're going to ask me, OK, what is the number? That is part of our planned process.
So we'll share with you at the end of the – you know what I'm going to say, Doug. But as I said in my comments, we do see the potential for further workforce reductions, including overhead and management positions, but we'll look at that reductions by function, by business, by country, and that will be the basis. We will conclude those plans during the summer months, and we'll review that with the board in November.
https://www.fool.com/earnings/call-transcripts/2020/07/31/exxonmobil-xom-q2-2020-earnings-call-transcript.aspx
I came here to discuss this email. I have NO clue what they are secretly hinting at here. Structural efficiencies? Workforce requirements? The reorg emails last year read like this email too. WTF are they trying to say. If I tried to submit this paragraph to my manager or to publish it would be returned with the comment "?!?" XOM executive writing style is 2/10–uses the English language in an ineffective manner.
It might just look at the earnings call. https://www.fool.com/earnings/call-transcripts/2020/07/31/exxonmobil-xom-q2-2020-earnings-call-transcript.aspx
Neil Chapman – Senior Vice President
Yeah. Yeah, Stephen is right, Doug. And I would tell you that this evaluation that we're going through as part of this year's plan to set up our cost structure for future years, '21 and beyond, we are looking at very significant efficiencies and lower operating expenses. And I know you're going to ask me, OK, what is the number? That is part of our planned process.
So we'll share with you at the end of the – you know what I'm going to say, Doug. But as I said in my comments, we do see the potential for further workforce reductions, including overhead and management positions, but we'll look at that reductions by function, by business, by country, and that will be the basis. We will conclude those plans during the summer months, and we'll review that with the board in November.
They clearly make to make change at the top. The Board has a responsibility to the shareholderS and install a new person to “ lead” and be accountable. Woods needs to move; unusual for XOM but these are unusual times. The rank and file have lost their confidence in Woods.