So according to our local newspaper ExxonMobil has defaulted on a contract and now owes $4 million to Montgomery County. This is because they had a contract to maintain a certain level of occupancy at one of the Hughes Landing buildings. The article goes on to say the layoffs are the reason the occupancy dropped below the threshold. Cost savings from the layoffs $1 million. Probably the same person that decided to fire the minimum wage trash collectors so $300k employees could waste their time walking to the common area.
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Lol!! You think THAT is the reason they want us all back in the office?
Has nothing to do with all the managers that need micromanaging and can't do it remotely. Need to ensure all our HiPos are managing the work efficiently before we make a bunch of regretted decisions because they couldnt look over our shoulder.
Well now we know why we were forced back into the office...
Why didnt some of the employees get reassigned from buildings A to B? You could have saved a bunch from playing that shell game.
Except that doesn't explain why XOM ever wasted money having people at HL in the first place. Or better yet, why did XOM waste all that money on building the campus ? Was it honestly necessary ?
GREF is dead! It is E&PS now. And moving desk cost $5k. Did you know that? That's how funny money works. No wonder our credit rating is lowered and we got kicked out of Dow. With this spending rate and the amount of moves we did in past we are screwed.
Costly to relocate employees! Maybe if we have GREF move them. But last I checked, my stuff fits into a box I can carry out the door. 100% mobil on my own two legs.
EMIT at Hughes Landing used to have thousands of contractors. And we let most of them go in early 2020. HL became virtually ghost buildings, what should we expect.
Awesome! Time for EMIT to hire a bunch of overhead “Agile” roles
The facts from the Montgomery County Tax Assessor and the Houston Chronicle
https://www.houstonchronicle.com/neighborhood/moco/news/article/ExxonMobil-to-pay-4M-in-property-taxes-to-16061230.php
Montgomery County commissioners approved a tax abatement default notice to ExxonMobil after the company failed to meet the terms of the agreement per the company’s January report to the county.
The default, if the company does not meet the abatement requirements within 30 days, will result in the company repaying about $4 million in property taxes to Montgomery County, The Woodlands Township and The Woodlands Road Utility District.
Montgomery County Tax Assessor-Collector Tammy McRae said the company was required to maintain 470 jobs. However, the company has maintained a minimum of 284 and a maximum of 438. McRae noted the default only applies to the company’s 331,840-square-foot Building B in Hughes Landing in The Woodlands. Building A, she added, is in compliance.
“Their payroll over the last six months was down just over a million dollars,” she said.
Precinct 3 Commissioner James Noack said he spoke with offials with The Woodlands Development Company who contacted ExxonMobil officials after the county receive information from the Texas Workforce Commissioner the company would be laying off 722 people in December, 45 of those at the company’s Hughes Landing location. At that time, Noack said, company officials indicated they were aware the tax abatement agreement with Montgomery County with regards to the number of employees required.
“In conversations with ExxonMobil since then that I have had directly, they did not follow through with that, they knew they were going to have fewer people in Building B than they should have had,” Noack said, noting he told the company officials he would recommend the county put them in default with 30 days to cure. “The responded to me was that business division would rather just default then have to go through the process of hiring more people.”
By defaulting, ExxonMobil will repay Montgomery County about $4 million in property taxes.
The county originally agreed to the tax abatement for the company in 2013 when ExxonMobil announced it would be constructing two multi-story buildings in Hughes Landing.
Pay no attention to the Op, who can’t even get the story straight. Montgomery County offered EM a tax abatement based on employment numbers. EM never met the required headcount, so the shortfall had nothing to do with the downsizing in 2020. All EM did in effect was forego the abatement, so no real impact, just didn’t get the offered savings.
Much more costly for EM to relocate teams to HL, so a good business decision overall.
Once again, EM wins, trolls fail. Next?
What kind of contract requires a certain level of occupancy?? Wouldn’t these rental companies want less wear and tear on their building overall?
Yep. Spending $5 to save $1. Typical.
Why was Exxon paying for wework space and sending employees there when all the contractual leased space was empty?
PIP a couple of executives. Problem solved.