What percent workforce cuts is everyone hearing for each of the US Buisness Units? The word "severe" is being tossed around a lot, and the rumours seem to be settling around a 40% workforce reduction.
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How could this layoff go right? Same leadership? Also results are not measured EVER so what will be used? Relationships. Most of you have worked here long enough to know how bad our leaders are. The competent employees avoid them. My God how could some of these leaders not be gone after the first ROM? many were in fact promoted.
The problem is Chevron can not distinguish between dead or alive. In fact dead is preferred. Do nothing and know nothing means you are not a threat and loved.
Let the Dead Wood be cut as it has been needing to for years, or the tree will fall taking the good wood with it.
Let the layoffs begin.
MCBU could be well over 40% as they sell off everything except unconventionals. This gives them room to absorb AMBU. It wouldn't surprise me to see cbu unconventionals managed out of MCBU by end of 2017. Would also not be surprised if Atlantic Canada (Hebron and hibernia) eventually goes to DWEP. Only thing left would be oil sands and kitimat (nojv?)
I am in D&C and we have no planned work. There are 70 office and field base employees doing NOTHING. We are not drilling nor plan to drill for 2 years. 75% is generous. I see the writing on the wall, in neon and flashing. You will be laid off. The whole OC argument is real. But we were 75% over staffed when we were actually drilling. And with every other BU generally at the same levels we should see the biggest reductions.
DWEP and what is left of GOM (5 deep water assets) merge. Someone here mentioned it. In HES alone you have 2 dozen redundant processes, with hundreds of extra employees. The last ROM long before this crash DWEP and GOM were merged on paper and DWEP headcount went down to 625 from 1,200. I would be shocked if this does not happen in this ROM.
Considering the present drilling / work over operations, 75% of the current drilling workforce could be reduced immediately. Honestly - does Chevron need the multiple management layers with the limited added value contributed by these extra layers? The same thought process applies to SCM and Lean Sigma experts. Clearly, there is a considerable amount of fat to be trimmed in all departments. With oil at $28/bbl, 75% personnel reductions may not be enough...
MCBU 25% or higher (30-35%)
Not all PZ expats are currently in the US. Many are still in country since their visa has not expired. Don't talk about what you don't know.
btw, Canada BU is part of CNAEP. The 'Saudi BU' is called PZ, and the expats have been in the US for sometime.
Saudi Arabia BU will rid itself of all expats and only keep nationals on payroll as long as Saudi government pays through a loan.
Would guess DWEP would be one of the lower ones as its been mentioned more then once chevron is heading for deep water in the future. Don't know if that's true at $28 oil. With that said -bv1 could just be BS as there are more BU that are effected then 5, unless we are talking only CNAEP (don't know all there names but I can think of MidCon, SJV, GOMBU, Pennsylvania, DWEP) . Don't know if i believe anything until mid February
The two hardest hit AMBU and GOM. As is they won't exist in a year. Transition will require small staff. AMBU will get a chunk of the 4.5 billion Watson talked about in his quarterly meeting to NOJV with 3 companies in the basin for lease holds and high grade assets and partners. NOJV requires little oversight just funds and will be managed in Houston and the buisness will fold into Midcon if and when we return to the basin. GOM will keep a small work force for Deepwater but also "managed" out of Houston. Combined with DWEP for any redunencies. Why have two FE, HES, finance when you can have one. Canada will not build Kitimat and will be folded into the midcon team. This wont happen this quarter. They will have Midcon as the uncoventional shale management team. Chevron would like to unload the SJVBU assets but can't. They want large projects and unconventionals. That's the model. The 40% was at $40 a barrel. It is now more of course but I don't have a number. I am not sure if Chevron does either. Now with this in mind watch the emails and you will see it unfold. The ah ha moment will be there. Also whole BU's will be shut down internationally. Indonesia will be shuttered and the money will be proportioned to LABU for shale development in Argentina.
The new org charts show a 25-30% cut on average
Those thinking 40% is too high are going to be shocked how lean staffing can get and the business still function safely. Cuts will become draconian if prices ever drop to and remain around $10 for more than a quarter or two.
The company can operate safely on very limited staffing.
Indonesia is one of the 75% BUs.
Maybe GOM is also 75% due to asset sales?
40% is way too high, all would stop
Won't name BUs
20-25% employee
75% all
75% all
20% employee
10% employee
are numbers I've heard for specific BUs. Contractors will be hit hard everywhere but especialy in the two 75%BUs. I'm only certain on the first one.