Another year end layoff round. The cycle just keeps repeating.
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“…Remember, the stock price is EVERYTHING to the ELT…”
Remember, personal compensation and power is all the ELT cares about. Family, employees, safety, environment… all are nothing. Expendable. Employees are a means to an end. Everyone wants to retire with at least $100 million (after-tax) net worth. Minimum.
May the odds be ever in your favor. Let the games begin. It’s going to be brutal.
Synergy targets equal layoffs. Realized efficiencies equal layoffs. Redundancy eliminations equal layoffs. Implementation of Operations Excellence equals layoffs.
As if they needed another excuse. This is just like 2015-17 all over again. Expect rounds fall and spring for the next year or two. Or more.
Layoffs? Yes, but not necessarily related to the acquisition. Here's the relevant bullet point in the announcement:
In conjunction with this transaction, the company plans to increase its targeted level of dispositions from the previously announced $2-3 billion to $4-5 billion by 2023. The incremental $2 billion of planned dispositions are expected to be sourced primarily from the Permian Basin as part of the company’s ongoing portfolio high-grading efforts. Proceeds will be used in accordance with the company’s priorities, including returns of capital to shareholders and reduction of gross debt.
I suspect they'll feel compelled to exceed this target if they don't see a material appreciation in the stock price. Remember, the stock price is EVERYTHING to the ELT.