Well, there was work on CTC that started a while back. Now tho it is getting bigger to include all of OPG given the business plan roll up showed our earnings are many billions below the promise MW made to the street a few years back and our capital and opex are all too high. I’m also hearing they may centralize more functions vs. push CTC folks out into the businesses, so as to get more scale from the center and to force more prioritization vs. every business doing their own thing with duplicated resources. The idea being decentralized full staffed resources in every business is inefficient…..This is going to be ugly……
13 replies (most recent on top)
Is management using a pump?
Full mast for layoffs!
Yep hearing all this too. More centralized. But hearing not another Trasnformation so am not sure how that works?
Basically the winners will be the consultants lapping up the mgmt cluelessness dollars.
And where’s the mgmt accountability for these latest mistakes?? Zero.
Chevron has been miserable to work for over the last 8 years. I will gladly take a package to leave this dumpster fire.
CTC has been in headcount and reputation decline for almost 10 years now. Anything SR is planning is to maximize the financial benefit of another staff reduction.
What just got bigger? Is someone in Management "rock" solid for layoffs?
I'm in CTC and my boss told me to get into a BU asap!!
This is a great idea on paper. Unfortunately we won’t be able to execute, and it will become another change for change sake. Management has delusional thinking around around head count, and this arrangement will be understaffed by 20-30%. Not mention what a fiasco the BU-CTC interface will be. Can you imagine the number of meetings to get basic things done…
Building off of last comment here……you can, and we probably should do both - centralize the technical functions - FE, PE, ES, etc. to gain much more economies of scale. And, keep local level management for external facing stakeholder management. This would be a huge change, but what we are do-g today ain’t working…….and we do need to do something radically different. Me thinks though that we don’t have the top level leadership to make it happen though.
OP: "...they may centralize more functions vs. push CTC folks out into the businesses, so as to get more scale from the center and to force more prioritization vs. every business doing their own thing with duplicated resources..." That could work, on paper. Exxon did exactly that about 7-8 years ago for deepwater operations, I don't know what success they had with it. For Chevron, you have to get rid of that ivory tower Ph.D CTC mindset, and retain the BU-level time- and financial-accountability. In the real world, the accountability outweighs the technical redundancies.
Hess purchase was way too expensive and the only thing we get is the Guyana, the Bakken asset is cr-p and old and does not produce much, they walked away from Anadarko deal which was 500 times better quality assets and at least 3 times cheaper compared to what they are paying for Hess [inflation, WTI, BBL reserves adjusted]. This will not end well
The ABU has about 600 HSE people and contractors sack that bunch ....rudderless
Given the 3Q earnings statement, management almost had to do a reorg: Had to do "something" to show commitment to share holders even if it is wrong long term. If you are an oil company, that can't find new oil, then what is left besides cutting heads? Expensive acquisitions in this climate are a mistake: We should have been smart enough to go shopping during the pandemic!