It'll look like India. Because the whole company will be in India. Except for Darren by himself in the energy cube.
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From 2000 to 2021, we have reduced global headcount by 50% (now 63,000 in 2021).
We should expect to see a target headcount of 50,000 to 53,000 employees by mid-2023.
Year Regular Employees at End of Year
1999 123,000
2000 99,600
2001 97,900
2002 92,500
2003 88,300
2004 85,900
2005 83,700
2006 82,100
2007 80,800
2008 79,900
2009 80,700
2010 83,600
2011 82,100
2012 76,900
2013 75,000
2014 75,300
2015 73,500
2016 71,100
2017 69,600
2018 71,000
2019 74,900
2020 72,000
2021 63,000 ($5 billion in structural efficiencies announced at 2022 Investors Day)
2022/2023 53,000 (estimate) (additional $4 billion of structural efficiencies planned based on 2022 Investors Day presentation)
The company has historically spent and hired their way out of down cycles. This is even more appealing now with the low cost of employees in low cost centers globally. Just hire 20 people in India for the cost of one current employee.
The problem is that hiring a bunch of low cost people is more a box checking activity than a capability asset.
The company never learns from the past and ExxonMobil management has never had good vision. They never have had to with oil being a commodity product with pricing controlled by a global cartel.
News alert. The company faced a similar problem in the late 70’s through the 80’s with the oil embargo and recession. Management was not prepared for a significant down cycle no matter what the reason. This is their job to anticipate and prepare for these types of market fluctuations. ExxonMobil management lacks leadership and vision.
DWW after reaching the first HC10 headcount target: "I am altering the deal. Pray I don't alter it any further."
DW will finally get paid what he thinks he’s worth. Even when actively destroying value he’s gotten sizable raises. Saving here and there, squeezing a penny, just so he can earn more millions.
Agree with previous poster: there is no coherent plan. DW thinks we can just cut costs & our volumes will still stay magically high and Wall Street will love us. Instead, upstream is / is going to soon “hit the wall”. On the other end, no one has coherently explained how LCS can be profitable (and the chances of it becoming profitable are zero as no politician in their right mind would advocate for a carbon tax now).
The Company doesn't seem to quite have a clear vision of that question. They sort of want lower cost structure w fewer people with more volumes. Trying to follow the advice of management consultants who want us to look like a 50-75 percentile Hays company, but, didn't really understand the culture we came from. Now in a mode of sorta letting it all straighten itself out somehow. To answer your question; what goes around comes around. The tide will turn, they will need many contractors and a retention program to keep business going. Management will get trained on how to be effective and so on and the Company will become fat, d-mb and happy again until the next down cycle.
Trick question - they’ll keep reducing the target.