Thread regarding Pioneer Natural Resources Co. layoffs

What is the strategy?

I case you had any confidence in Pioneer leadership...

"University of Texas at Arlington found that layoffs had a neutral to negative effect on stock prices in the days following their announcement. The study also discovered that after layoffs a majority of companies suffered declines in profitability, and a related study showed that the drop in profits persisted for three years. And a team of researchers from Auburn University, Baylor University, and the University of Tennessee found that companies that have layoffs are twice as likely to file for bankruptcy as companies that don’t have them.

All too frequently, senior managers dismiss such findings. Some argue that since companies do layoffs because they’re already in bad shape, it’s no surprise that their financial performance may not improve. Layoffs are so embedded in business as a short-term solution for lowering costs that managers ignore the fact that they create more problems than they solve." - HBR

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Post ID: @OP+179tbFNo

8 replies (most recent on top)

@vxd+179tbFNo

My first MBA class was not Layoffs 1.0; it was called Leadership & Ethics...

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Post ID: @1jmo+179tbFNo

What is the strategy? More managers!

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Post ID: @1pkw+179tbFNo

Single basin until told otherwise by Wall Street

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Post ID: @1sgt+179tbFNo

Correct, pnr did not remove any dead weight last reorg. Pnr has never had dead weight.

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Post ID: @vzc+179tbFNo

@bas you are the dead weight. 1) There were plenty of excellent employees that were released during the last layoff, whose contributions are missed today. 2) "Dead weight" should be evaluated on an individual performance basis. However, the majority of our front line managers are weak, less than 30, and increasingly placed to meet quotas. They are then led by incompetent Sr. Mgt, so a blind leading the blind situation. 3) Sr Managers were unable to organize the business in real time and allowed redundant employee headcount to grow unchecked. However, you think the same people will get a restructure right. So, your last point is fair, but you are still dumb.

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Post ID: @vgp+179tbFNo

PXD has been acquired SS knows exactly what he is doing just remember no one will give money especially 1.5 yr pay unless they are getting a bigger paycheck
Chevron acquired Nobel for 2.5 market cap, Devon is acquiring WPX for 2.5 market cap next will be PXD and Parsley

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Post ID: @gha+179tbFNo

The strategy is clear: do not lever up. SS is not going to borrow for keeping the dead weight on board indefinitely. That is the strategy. For those triggered by the phrase dead weight - theyre same ones with nothing to contribute to the company at the current time. Just how it is.

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Post ID: @bas+179tbFNo

I am guessing if you go to business school for an MBA one of your first mandatory classes is LAYOFFS 1.0 as a quick attempt to remedy a once off balance sheet bad fiscal quarter. What is does is cause a deep stain in the very fabric of a company for those departing and a very negative embedded memory on those that are staying. The company for many years will be unable to shake the negative, even if market conditions get better. The newer generation of workers are forcing companies to enter the community pf people, hopefully companies will see there are other tools that can be used besides lay-off their employees. To all those that worked for Pioneer in 2018, the 4th quarter earnings was an ominous early warning that some bad times lie ahead for Pioneer and other shale players.

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Post ID: @vxd+179tbFNo

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