25% to 35%. I am not sure they can layoff 1/3 of the work force in one layoff. This is much worse than I anticipated. I knew it was bad, really bad. But Chevron is going through a catastrophic business cycle. I was going to try and ride this out but I am going to plan B tomorrow. These numbers were from BCG. Specifically from Aagam Ashmed who seems to be in charge. The report made me sick. It's bad bad bad. Chevron in not engaged and letting BCG dictate without much resistance. If anyone else has had access to this report please confirm.
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Just told a hour ago that our org chart was cut again last week. My job is one being cut. Im in a small group, so I wont name which one.. but going from thinking you're ok and pretty safe to "you should apply for Phillip's job" is pretty gut wrenching. Checking the box and apply for whatever 4 jobs I can find -- and hoping the incumbent is leaving or not wanting to stay in their position. :/
— Anonymous144817 thanks for the advice and I took it! I am asking for a leave of absence under FMLA. You know, I find it ironic, that a layoff board kept me from over reacting and throwing the chips in! I am very sad and not in a good frame of mind. Your comment made all the difference. Thanks again....off to get FMLA and take care of Mom.
CBU is getting it's ROM notifications today and tomorrow. So far it is quiet around here. Rumor is that that org chart provided at end of June has been trimmed further but not disclosed to anyone but upper management. A few positions have been cut but it could be that they just delay filling a number of the positions until 2017-2018 assuming prices are back up by then. It could be worse here than initially expected. If prices stay sub-50 then I would not be surprised if Kitimat is sold off and Kabob & Liard get slowed down or becomes an NOJVs. The well costs are just way too high to be competitive in this market. The incoming president is a finance guy with strengths in valuation, acquisition, and mergers. Doesn't seem like someone to grow a BU.
Hi OP- sorry to hear about you recent loss and family situation. But please do not make a decision in a haste. You are in a vulnerable emotional state with loss of your dad and what is happening in the workplace. I remember my own situation over 10 years ago when my dad passed away. I was making decisions in a haste until good friends talked sense into me. Looking back I am glad I didn't pull the trigger. I am sure every situation is different but just wanted to share my experience.
Oh shit, he says this 100 times."I see, you are a very valuable employee and are much needed here." It would not be exaggerating to say in 4 hours he says this over 100 times. This is to funny that he says this to every one. To the cabbie "I see, you are a very valuable employee and are much needed here." In a classic Indian accent. BTW I do think they whack 30-35 percent on all upcoming ROMs. I have no proof but if oil stay below 50 my gut says deeper cuts than 25%.
How do you get the report from that clueless Aagam Ashmed. He (Aagam Ashmed) interviews me for days and you get a final report. I knew his motives and did show him EVERYTHING I could. But most people jerked him around. Outright manipulated him. I would suspect the number to be higher than 35% if oil stays at $40. To some it up like Aagam Ashmed says "I see, you are a very valuable employee and are much needed here." He said this after every other sentence.
The P is in reference to the price of oil. You officially get the price from the WTI. The information in the report from the OP comes from a pretty high PG. Of course you don't know what's going on. Chevron keeps everyone in the dark. But to put the OP in layman's terms. Chevron spent 100 billion in MCP's. This made it necessary for Chevron to have adequate cash flow to cover costs as they were using cash from $100 oil to pay expenses. They did not leverage/take a long term loan for such massive spending. So now Chevron is extremely dependent upon the price of oil to generate cash to pay the bills. Bills such as your salary. Chevron does not have the free cash flow to cover the bills at $42 oil. The difference between Chevron and all the other majors is Chevron spending that 100 billion. This would not be an issue if oil did not fall in price but since it has your job is now in danger. Much more than it would be at Exxon for example. They have cash as they did not spend half their market cap on MCP's. Their CEO said we are not on the same buissness plan as Chevron as we believe a drop in oil prices would hurt our position to deliver on many cost fronts.
None of this makes sense to me. Out here in this great central valley of CA, no one is talking about these things. What is this about P42 and P52? Of what? Please be more explicit. Where does one get this type of info officially?
This surprises people. Are you that removed from the current reality. The poster is speaking the truth and the reason I know is the position papers title is P45 oil and affected staffing estimates. It is from BCG and he nailed the author. But all the calculations are on P42. And the cash flow decrease is correct. Again does this surprise many??????
Yes it did just pop in my inbox as I was away at my father's funeral. I did not check any work correspondence. So it hit me like a hammer when I read it after after an emotional weekend. AMBU and CBU were based on P70. This current ROM(for all Buisness) was taken down to P52. With the current state it is now at P42. The $10 dollar differential is $14 billion a year, 3.5 billion a quarter in cash flow loss. This is Chevron wide for the upcoming ROM's. Houston's ROM is underway and will or should I say would need to be visited again. I am sure you have heard the percentages tossed around. This is where they come from. ASK AT YOUR TOWN HALLS OR INFORMATION SESSIONS. Chevron's cash flow is dried up and has to cut variable costs. Salaries are are variable with a RIF. BCG did some simple modeling to show P42 and cuts needed to cover the 14 billion. I don't think this is an epiphany. My plan B is to retire early and go back to Chicago to take care of my mother. My wife passed and both of my kids are in Chicago so it is an easy decision. I will file the paper work tomorrow. Good luck to everyone.
And you sat on this all weekend and just pooped it out Sunday night. Right. Hold on, let me put my boots on, it's getting deep.
Lol... Which bu? All
Which BU?
OP, what's your Plan B? Just curious.
BCG is only doing what John Watson and the Board of Directors want. These consultants are only navigating Chevron through the turmoil, that's all. The price of oil and the perceived future for this industry will dictate how much more cutting will take place, where it will take place, and in what stages. All BCG is doing is following orders from the top. That's what the Corporation is paying them to do.