This past Tuesday VP's were let go...two weeks later Directors and Managers. Two more weeks and the rank and file were hit big, i.e first pay week in October. We know that no VP will be let go since almost all are new..so don't be surprised if the first round comes in a couple of weeks.
8 replies (most recent on top)
Okay, use your rig metric if you prefer. I guess we should trim about 60% of the headcount. Everyone is making a different argument that leads to the same end result. There are too many f***ing people on board.
^^^^correct^^^^
One again, the price of our stock x # of shares has about no basis on the amount of employees needed to run the company. Employees per BOE/day, per net acreage, per rigs, per proven reserves, etc, etc, etc would be somewhat better indicators, but don't tell the whole story. I am not necessary saying the number is justified we currently have, but by just looking at market cap to staff ratio you get an indicator that has nothing to do with what the company needs to operate.
If oil was $120/bbl, we would still have too many employees. Why is it our peers all seem to do more with less? Look at the market cap of the 5 closest in our peer group. Not that those figures tell the whole story, but by that metric we should shed about 40% of our staff.
Here's the thing.. Doug has stated over and over we must remain flexible and quick to react to anything that happens. In 2013, CHK had a massive restructuring. Reporting chains were seriously altered, some departments grew, others were massively reduced. These changes were made so the business can function as it does today. I HIGHLY doubt we will see a similar move in 2015/16. People have stated on this board that layoffs have been happening already. A few here, a few there. I suspect this will go on for the next 6 months. For one, laying off 20% of the company is massively expensive. Secondly, we don't want to be in a position where we need employees if the oil price ever wet up suddenly. Third, it's PR. Massive layoffs are bad bad PR and Doug is already widely known as "The Dick Drainer", a CEO puppet of Ichan and other men in shadowy back rooms. He gets the blame for AKMs mistakes. I would imagine Doug is fighting for us more than you think. The Williams contract and soon the Petra OPEN will reduce our cash burn rate. LNG should help a little. Meanwhile, pray, ask of the universe, do a rain dance or whatever the f***, and hope for the most brutal winter of a generation.
I would be shocked if they didn't do layoffs. It started with the service companies, but now Devon, Marathon, COP, Chevron, and I'm sure others have done/are doing layoffs. And everyone knows CHK has way too many employees compared to their peers, plus their cash burn is outrageous - 1 bill a quarter! That 4 bill line of credit can be cut in more than half this October once the banks do their redeterminations. People need to get laid off if this company is gonna survive.
They would move everyone to a new 401k and get rid of them in one day. I'm surprised how naive everyone is on this site. Nothing is a sign. Nothing they do can be interpreted. Just don't be shocked - I mean how could you be?
Guys, they're not going to move everyone to a new 401k plan and let them go 3 days later. It's either going to happen before the end of the month or not at all. Don't be a shitty employee and you should be fine.