Thread regarding ExxonMobil Corp. layoffs

Leaked ExxonMobil Memo: ExxonMobil Considering Job Cuts
By techstafferin XOM onSeptember 2, 2020

https://techstaffer.blog/2020/09/02/leaked-exxonmobil-memo-exxonmobil-considering-job-cuts/

The drop in oil prices has forced ExxonMobil to evaluate cost-cutting measures which include job cuts. According to Business Insider ExxonMobil released a memo on Monday saying, “Unfortunately, we continue to see prolonged negative market impacts that require us to make further changes so we are best positioned to take advantage of market improvements when they occur.”

The memo suggests that the company will be looking at high-cost countries, which would likely include the US. There is no specification on how many jobs could be cut or the timeline for the process.

ExxonMobil has previously denied reports that it was considering layoffs. However Gizmodo has reported that ExxonMobil is, “planning for contraction into 2021 and could target cutting jobs in the U.S. and outsourcing them overseas where labor is cheaper.”

An ExxonMobil employee told Business Insider that some jobs have been moved overseas to countries with cheaper labor, including Malaysia, India, and Argentina, in an attempt to reduce costs.

According to Fox Business, ExxonMobil has already declared a voluntary lay-off program in Australia. This comes after the company has decreased capital spending by 30% this year alone.

Ashley Alemayehu, an Exxon representative told Business Insider, “Our study work continues on a country-by-country basis, and we will communicate any changes with our employees when it’s appropriate.”

This review comes at a time when ExxonMobil has used several cost cutting methods. Most recently the company declared it would suspend the 401(k) matching program. They have also been accused of laying people off through a “Performance Improvement Plan” (PIP).

Reuters reported, that ExxonMobil was pursuing a spending increase prior to the pandemic in order to boost oil output and turn around decreasing profits. Clearly Coronavirus made this plan impossible.

Prior to an earnings call in July, ExxonMobil had avoided talk of job cuts. However, with a second quarter loss of more than $1 billion, according to Business Insider, ExxonMobil has been forced to confront the reality that jobs cuts will need to be considered.

Neil Chapman, a senior vice president, stated during the July earnings call, “Looking ahead to 2021, we see significant potential for additional reductions based on identification of further long-term structural efficiencies, reduced activity levels, and an evaluation of our workforce requirements, including the potential for further reductions in overhead and management positions.”

Several employees have speculated that ExxonMobil’s goal is to ship jobs overseas where labor costs are significantly less expensive. One employee told Business Insider that outsourcing is now starting to affect more senior employees.

Want to learn more about ExxonMobil? Check out our article on XOM PIP: https://techstaffer.blog/2020/08/03/exxonmobil-uses-performance-reviews-to-justify-job-cuts/

Learn about ExxonMobil’s loss of 401(k) matching here: https://techstaffer.blog/2020/08/05/first-exxon-layoffs-now-loss-of-401k-matching/

Sources:

Jones, Benji. “Exxon Made Managers Dub Some Employees Poor Performers to Cut Staff – Business Insider.” Business Insider, Business Insider, 30 July 2020, https://www.businessinsider.com/exxon-managers-dub-some-employees-poor-performers-cut-staff-2020-7.

“The Retirement/Transition Guide for ExxonMobil Employees.” The Retirement Group, The Retirement Group, 11 Aug. 2020, https://energy.theretirementgroup.com/exxonmobil-educate

Kahn, Brian. “Exxon Is Reportedly Eyeing Layoffs.” Earther, Earther, 1 Sept. 2020, https://earther.gizmodo.com/exxon-is-reportedly-eyeing-layoffs-1844920035.

“Exxon Weighs Global Job Cuts after Unveiling Australian Lay-off | Fox Business.” Fox Business, Fox Business 2 Sept. 2020, https://www.foxbusiness.com/markets/exxon-weighs-global-job-cuts-after-unveiling-australian-lay-off.

Paul, Sonali. “Exxon Weighs Global Job Cuts after Unveiling Australian Lay-off Plan – Reuters.” U.S., Reuters, 2 Sept. 2020, https://www.reuters.com/article/us-exxon-mobil-cuts/exxon-weighs-global-job-cuts-after-unveiling-australian-lay-off-plan-idUSKBN25T0AI.

Ghosh, Palash. “Exxon Mobil Considers Layoffs, Spending Cuts To Save Its Dividend.” International Business Times, https://www.facebook.com/IBTimes, 30 July 2020, https://www.ibtimes.com/exxon-mobil-considers-layoffs-spending-cuts-save-its-dividend-3019739.

Gross, Elana. “ExxonMobil Reportedly Changed Its Employee Review Process To Increase Performance-Related Job Cuts.” Forbes, 24 July 2020.

“U.S. ExxonMobil Savings Plan Changes.” ExxonMobil Employee Connect, https://hr.na.xom.com/us/benefits-policies/investmentindex#a1399111-ffff-4778-970e-cc8bb06ddd8a. Accessed 5 Aug. 2020.

Charges for the 2020 layoffs or for upcoming 2021 layoffs?

Kearl, with all the costly design fixes that followed, cost upwards of $25 billion not $10 billion. Capital costs to sustain production will continue to sink the project deeper in the pit.

$200M to voluntarily let our best employees go in Europe and Australia.

Other companies can write novels about how voluntary packages left them devoid of talent, but we want to discover this for ourselves.

Here is one for you OP. How about we borrowed $75 billion to pay dividends since 2015. By terminating employees at 1-2B per year, we saved enough to pay this off in the next 37 to 75 years. Great job Warren Doods and company, my family and others are happy to give back.

https://www.hartenergy.com/exclusives/exxon-mobil-expects-200-million-charges-job-cuts-year-193940

Exxon Mobil Corp. expects up to $200 million in charges this year related to job cuts in an era of cost savings, according to a regulatory filing.

The biggest U.S. oil producer has slashed costs, delayed projects and said it could trim an estimated 14,000 employees globally, or 15%, including contractors. Exxon Mobil reported its first annual loss last year as the COVID-19 pandemic battered energy demand.

The company will spend more this year than in 2020 as workers exit, according to the filing.

Total cash outflows would be between $400 million and $600 million, versus $47 million last year, according to the filing. Exxon Mobil had set aside some money last year toward the costs.

The severance cost estimate does not include job cuts related to changes in the company’s portfolio, it said.

Reductions should be “substantially complete” by year-end, including voluntary and involuntary exits and the use of fewer in contractors, Exxon Mobil said.

In the first quarter, the company had before-tax charges of $39 million mostly from employee separation costs in Singapore and Europe.

Cost savings from its global staffing review are likely to range between $1 billion and $2 billion per year versus 2019 levels, according to the filing on May 5.

Cost savings of $1 to $2 billion per year.

That would definitely cover Woods and his cronies and the Boards and associated HIPOs salaries, RSUs, pensions, bonues, etc.

Those savings would also take the following to cover some of those same above Management more brilliant decisions to cover the following as they PIPED us, PILed us, took away our 401k match, offshore our jobs, declassified us, froze our salaries, etc. Etc. By Saving one to two billion dollars per year it would take 5 to 10 years to get back our lost investment for the wasteful spending at Kearl and so on and so forth. So the question becomes, none of us made the design to investment or make any of the bow decisions but we paid the price and the employees that made those decisions are still running this company. Do you have any doubt that you should be looking elsewhere for a job? They only look out for themselves, and they will do it all over again and again. They did not save the dividend for the shareholders or for grandmom. They did not choose rhe dividend over the employees. They choose the dividend for their own wealth, nothing more and nothing less, their own personal gain, that is why they voted themselves stock bonuses last year and RSUs. Wake up, they do not give a darn about you or your families.

Kearl at $10B - 5 to 10 years

XTO at $40B - 20 to 40 years

Lean Into Strategy at $30B - 15 to 30 years

Annual Dividend Payment at $15B - employee savings is a pittance

Stock buybacks at $200B - 100 to 200 years

You add your own units and organizations examples of wasteful and poor management CAPEX spending decisions to the list, please

As the reported by NASDAQ, total cash will be between $400 and $600M this year for the job cuts. Dallas had apparently set aside $200M+ on the 2020 books for 2021 expenses. The extra $200M was allocated yesterday in the SEC filing.

I'm a little confused - it took EM close to a $1M just to get rid of me in Feb.
And they are talking $200M for the year?
Funny math. Typical EM.

$200M is nothing for Exxon.

Total cash outflows would be between $400 million and $600 million, versus $47 million last year, according to the Securities and Exchange Commission (SEC) filing. Exxon had set aside some money last year toward the costs.

https://www.nasdaq.com/articles/exxon-expects-%24200-mln-in-charges-this-year-for-job-cuts-2021-05-05