They are laying off approximately 30% of its support workforce in what they have dubbed at "Project Alpha". It is being led by the Boston Consulting Group which is the same company that gutted Chevron Downstream. Chevron has also restructured its pay for anyone with a college degree in Engineering or other "targeted" fields. This sounds fair but the result is that the layoffs are targeting salaried, non-Engineering degree employees that have been with the company for 20+ years. Meanwhile Chevron continues to hire inexperienced college graduates through its Horizons program.
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@9vcjs, I've seen a lot of that too. Chevron doesn't truly ver and select the best candidate for the job. Three possible things happen: 1) They wanted to get rid of you for whatever reason, 2) Friends and Family is alive and well, or 3) HR involvement - as in Affirmative Action.
To anonymous 114698: I can use their, there and they're correctly and knew how to do my job as an Administrative Assistant. Helped everyone in any way possible, worked well with all but it still didn't matter. They tell you to apply for your job if a position is still open and 2 others that you would be qualified for. The job description written for my position was essentially established around my daily duties and they still selected someone else for my job whom did not even know half of the tasks in the job description. I questioned how they were the better choice over myself and was just rudely told that they had made the best candidate choice. After the layoff, in discussion with others still in the department, they don't even have that person doing the job duties she didn't know how to do. Which to me was a slap in the face as that means they weren't making choices by best experienced they were making it by People's Choice.
To anonymous 114698: I can use their, there and they're correctly and knew how to do my job as an Administrative Assistant. Helped everyone in any way possible, worked well with all but it still didn't matter. They tell you to apply for your job if a position is still open and 2 others that you would be qualified for. The job description written for my position was essentially established around my daily duties and they still selected someone else for my job whom did not even know half of the tasks in the job description. I questioned how they were the better choice over myself and was just rudely told that they had made the best candidate choice. After the layoff, in discussion with others still in the department, they don't even have that person doing the job duties she didn't know how to do. Which to me was a slap in the face as that means they weren't making choices by best experienced they were making it by People's Choice.
Delete the Middle Class. RICH or POOR is the NEW WORLD ORDER.
PROJECT ALPHA
Dear Colleagues,
Earlier this week, Project Alpha concluded its Phase 2 activities. The cost reduction targets and key initiatives for each of the 24 in-scope groups have now been finalized. The changes occurring at the corporate center are happening in parallel with similar efforts across the enterprise.
Phase 2 DRB Outcome
In line with the project’s core value drivers – Effectiveness, Efficiency and Affordability – and with the support of the DRB members and Endorser, an overall cost reduction target of approximately $1 billion, or 21 percent, from our 2014 baseline has been approved.
Approximately 60 percent of the overall reduction will be achieved by reducing labor costs and 40 percent by lowering non-labor costs. Approximately 1500 employee positions (including 270 presently unfilled positions) will be eliminated, representing about a 12 percent reduction to Project Alpha’s total in-scope employee workforce. Additionally, staff augmentation contractors will be reduced by approximately 600, or 40 percent, across in-scope groups. To fill the majority of the open employee positions, the Resource Optimization Management (ROM) process will be used.
Changing the Way We Work
The magnitude and type of changes that will be implemented vary across each in-scope group.
Some functional disciplines have found ways to streamline work performed across the organization. For example, Health, Environment and Safety (HES) is working with ETC, PRC and Upstream Capability to consolidate functional expertise and headquarter roles to better serve the enterprise. In Gas and Midstream, the team has redesigned the footprint of the headquarters organization to more efficiently support the business. Additionally, most groups are reducing layers and consolidating managerial responsibilities into fewer overall positions.
To create more efficient and affordable working models, some groups have found ways to secure general services from third party specialists. For example, CBRES and the Law function have identified some services that can be more efficiently provided by external vendors.
Over the next few days, your leaders will provide additional information on the specific changes for your organization, and how they will affect you personally, including:
• Specifics on which groups will participate in ROMs, and details on the timing,
• Any major changes to your organization’s structure, and
• Additional detail on changes to work processes or priorities in your organization.
What’s Next
ROMs will take place in three rounds with starting points in August, September and October. Selection announcements will be made after each round, with the majority of selections finalized by mid-November. Specifics on timing will vary based on your organization and pay grade.
Resources Available
A ROM Resource Center has been established to provide detailed information on the process and overall timeline. This site provides information on how to prepare for a ROM, as well as answers to HR-related frequently asked questions.
Your supervisor and leaders will help guide you through this process. Additional support resources are available through the Employee Assistance Program and the Global Office of Ombuds. Please continue to refer to the Project Alpha webpage for the latest information on the project and answers to Frequently Asked Questions.
Staying Safe & Focused
The next several months will be challenging. We encourage you to stay engaged and focused on Operational Excellence and delivering your 2015 business priorities. At the same time, please take the necessary steps to prioritize your personal health and well-being.
As we work through this change, keep in mind that we are making decisions and taking needed actions in response to a significant shift in our business climate. Project Alpha’s efficiency improvements and cost reductions will improve our absolute performance and our competitive position. As always, our actions will continue to be guided by our values in the Chevron Way.
Thank you for your continued support. You will hear regularly from Eimear and your leaders as we move through the next phase.
Pat and Joe
We're going down, baby! ETC is the bloat-borg of the Houston office. Lots of meetings to discuss other meetings with spreadsheets and power points as action items, followed up with more meetings.
To the guy/gal with 101 in their workgroup- you are right. It is a 25% reduction. BUT-after project funding cuts (including university JIPs and other non business critical projects) and contractors, this number is estimated to be between 13-18%. So, if your unit has 101 people in it, then after all non business critical positions and those who are willing to retire have been let go, probably looking at another 5 people. It has to happen. If you are doing your job and can use "there, their, and they're" properly, then no worries. To be the company most admired for its people, we should do this. And, no. I am not a manager. I am a contributor with an ES degree, mid PSG. Also-there are NO org charts out yet.
"30% is not true. 20% is the cost reduction number. Unclear how many layoffs in terms of numbers."
This guy is full of shit. It was 30% in Feb and has been more since then.
Some of us "Horizons" noobs respect the experienced folks. But I agree, arrogance is not in short supply from my peer group. It's unfortunate and embarrassing.
The post of working with developmental employees IS SPOT ON! No clue, no mentoring, no understanding. You have mechanical Engineers that can not change the air filter in a car. They have had zero lifetime experience. Then no field work when they are at Chevron. It's a disaster.
Worked with the Development employees, fill their heads with a lot and they think they can run a company without no lifetime experience. They have no respect for experienced employees, just how fast can they get to the top. How much experience can you gain with less than 2 years in a position? The best thing is if they screw up, make bad decisions, they will be long gone and never be accountable for their performance.
25% was given in Houston to my group. 101 employees now, and 75 by the end of the year. What's scary is there is no plan and Boston Consulting Group is running Project Alpha. When you can't even make your own staffing decisions, that is bad!
I'm OC but I don't think they'll touch me because I'm black.
Really? So where do those non-degreed glorified admin types (like OC) fall? You know, the ones who walk around all day and gossip with no real job function? They make peanuts but they are dead weight to the company.
30% is not true. 20% is the cost reduction number. Unclear how many layoffs in terms of numbers.
100% accurate