Thread regarding Chevron Corp. layoffs

Bridge your service if you are "eligible for rehire"

I’ve followed this forum very closely for the past few days. In late 1999, Chevron was accumulating as much $$ as possible to acquire Texaco. My whole group was eliminated in 2000 under a downsizing program called SITE (special involuntary termination enhancement). Instead of getting two weeks of pay for every year of service, they gave us our lump sum annuity (heavily discounted due to age), plus a bit of cash, $5k towards training/development, and full medical benefits for 6 months. I thought it was fair. I was rehired in 2007. Someone in an earlier thread said “you have to pay back your lump sum if you get rehired.” It doesn’t really work that way (at least in my understanding). If I retire in a few years (if I still have that option), instead of getting the full lump sum you would normally get for the number of years you worked (plus your age), the company discounts the final lump sum taking into account the earlier lump sum that you received. What happens when you are rehired is they “bridge your service.” So say you left after 15 years of service, and you were re-hired 5 years later. When your service is “bridged” as a rehire, you start up on year 16 (instead of year 1). Also, you are 5 years older. The annuity is calculated by combining your age and service. It can be a very large number.

I know many of you are bitter about leaving Chevron. When my job was eliminated in 2000, my wife was pregnant. It was stressful, don’t get me wrong. But I ended up making about twice as much money the next year doing external consulting. Hard, tiring work with a bunch of travel, but well worth it. Three things struck me when I was rehired in 2007. 1) How much bigger and global the company was (Texaco, Unocal), 2) how much more diverse the company was (age, gender, ethnicity, etc.) and 3) how proud our senior leadership was in beating Exxon’s ROCE.

I know a lot of our sr. leadership and have always had great respect for their brainpower. As they say in the south, I think though, some of them got “too big for their britches” and started believing their own press releases. I was greatly concerned in global town halls when I heard of the number of major MCP’s and mega MCP’s ongoing. Biggest concern I had was, do we have the manpower to do a good job? I think we know the answer to that question. While our culture is PC and conflict averse to the max, I’d rather be in a culture like that than one that fires people at the drop of a hat (I’ve been in a culture like that as well). Problem is, when you don’t routinely hold people accountable for poor performance and occasionally fire someone for flat out incompetence, we get into these downsizing situations.

Last point (sorry for the long post). I’m as frustrated as everyone else with what is happening. But if you have any inkling of coming back to Chevron in the future, don’t burn your bridges. I believe CVX will come out of this (hopefully stronger). I don’t know if someone with a 2- in the last three years (e.g. RAE) is considered eligible for rehire (I’m not in CNAEP or HR, not sure how it works). Alpha folks may be able to come back, since those cuts will be more about folks who are left standing after posting for a position someone else got. If you end up leaving Chevron and are considered “eligible for rehire” you can always decide not to come back. I’m just suggesting you leave your options open (can never have too many options). Good luck to all who were cut. I know how difficult this transition is and I’m pulling for each and every one of you.

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Post ID: @OP+CZazbs5

6 replies (most recent on top)

A good read! Thank you for the advice in this post. Much appreciated with so much ugliness on this site right now!

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Post ID: @2cfg+CZazbs5

There is a limit to the number of years you can be gone and have your time bridged. I'm a rehire but was gone over ten years and started back at zero everything.

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Post ID: @2yi1+CZazbs5

Thanks 136525 - That's a great post. I know several people who left the company and came back and returned at higher salaries reflecting their new work experience. Goodness knows Chevron is far from perfect, but if you are working in the right organization and around good people, it can be an excellent job (see the other posts for when it is not a good job). Until i read your post, I didn't appreciate how the lump sum works for rehires. I think your data is very important for people to consider since I don't think most folks appreciate how much your physical age factors into the pension formula -its not just years of service, your age probably matters more. Your pension benefits rise begin to rise much much faster in your 50's than compared to the contribution the company makes to your pension when you are in your thirties. If you get laid off at 45, you might just want to give Chevron a call when you are 50 to catch the pension benefits wagon one more time.

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Post ID: @2Waq+CZazbs5

They told me I'm eligible for re-hire in 60 days when I come off of payroll and depending on how soon it was I may have to pay back part of the severance. I have no desire to return at this time knowing how much worse things will get at Chevron before they start to improve. Perhaps one day.

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Post ID: @1Xmz+CZazbs5

Hi Anonymous136525 - Thanks for your advice and encouraging words. I expect that Chevron will cut too deep, eliminating the fat, but also muscle and bone in these ROMs. Also, the "best and brightest" will get fed up and leave. When oil prices recover to ~ $70-$80 in a couple of years CVX will need to re-hire expertise and talent, so yes, don't burn your bridges. This current bloodbath may also force the San Ramon folks to forget about all their energy-wasting, morale-sapping, useless "processes". The operating companies could have lots of opportunities in a few years, and it might even be fun again to work here ?

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Post ID: @1FIc+CZazbs5

Thank you for sharing your experience. Appreciated!

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Post ID: @1XZ1+CZazbs5

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