10% workforce reduction and suspension of savings plan contribution are the first steps. Another 10% Involuntary workforce reduction (called a lay off and with severance) seems likely in early 2021 (using the performance ratings recently assigned that actually apply to 2021) based on the economic environment and recent statements from senior management. Of course, we shouldn’t expect salary treatment next year (or longer if salary tables are reduced which they likely will be since the competition is not paying variable pay in this environment). Keep in mind, we are one of the few remaining companies with a pension. Most other majors have eliminated or gutted their pensions over the past several years. It is likely only a matter of time before ExxonMobil decides it is time to end it for those not nearing retirement age. Recent events signal management may be interested in finding such big ticket cost savings. This would be a huge cost savings and it is not a stretch to assume it is under consideration. Those of us who are staying should not feel too secure about the future. After the bottom 10% of the workforce is forced out (and another 10% likely to follow in early 2021) and the company continues to do some campus hiring (new hires tend to be ranked in the middle and push down half of the other employees) we need to be aware that today’s “good” employee may very well be tomorrow’s “needs improvement” employee simply due to structural changes in the composition of the relative assessment list. Keep the faith but be prepared for a future that may not fit your current expectations.
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Always found this hard to understand myself. Maybe some find it harder to make time outside of work. Most people probably don’t see me as very social to begin with but I am loyal.
@1wyc Milk and honey
I made a lot “friends” working in corporate world.
26 years. Thousands of interactions with coworkers/leadership.
It’s been 6 months since I was let go and I only hear from 1 person
One person remains.
Your job isn’t your family. In fact, the people there really aren’t your friends
if the company is hiring new people, the solution is simple; do not teach any to them or act like you are teach them, but the problem is beyond that point. The problem is when somebody try to be a smart@s, trying to let the people know that there are not layoffs at EXXONMOBIL. Sad but true, but this is the person who is leading EXXONMOBIL. Counting all the Cr@p around him.
I do not think there will be a severance package or improved retirement incentives. Near term cash is the problem, better to PIP low performers again next year. Executives can be forced out by allowing them to keep unvested restricted shares OR maybe you just force them out and save cash by not allowing those shares to vest. Executives cannot go to work for competitors or risk losing their shares
Folks higher than bottom 50% should be concerned too....
Who is likely to get sacked a low ranked senior technical (actually operates and knows the unit) vs. A mid ranked supervisor or planner.
But since some of us are looking for jobs I’ll tell all of you that “made it” that all Exxon jobs are safe. Don’t worry about looking for a new job. All will be okay. You’ve gotten rid of the low performers so sales and prices will increase starting next week or the week after. Looking for a new job it a waste of time. Keep focusing on your performance and making PowerPoints and relax since you know Mr.woods thinks you are worthy.
This post is the most realistic headline post so far. clearly an insider who knows the system and how XOM sets compensation and ranking
the 7% match is the only thing variable in the short term.
Fire Woods is stupid. Just two months ago, even after oil prices plummeted. The Board was re-elected with over 90% vote. Plus Shareholders decided to keep Woods as both CEO and chairman of board by 68% vote (better than last year). Woods will keep his job if he gets costs under control and profitability back up. Employees=Cost. Benefits=Cost. High Salaries=cost. Travel=cost. Bad investments=costs. Read the second quarter earnings transcript carefully. Costs will be cut. if you are ranked in bottom 20%, start looking for a job now.
Management have preached the value of integration to Wall street for decades. They will not divest midstream, upstream and chemicals and downstream. They will squeeze costs, cut workforce, divest marginal properties and plants (Selling employees with the assets just like we did in Norway last year). Pay will be competitive with BP, Shell, Total and CVX (this is who we compare to) for purposes of management compensation. Maybe we need to introduce more variable pay like CVX (who is cutting 8000 people and BP cutting 15000). At least the cost structure automatically declines when profits are down.
I predict that the CEO will step down or #firewoods. XOM is such a failing giant that it needs to split up, like what happened to COP and P66. Upstream is dragging down Downstream and Chem.
Rainbows and butterflies