Chevron will announce new management structure

Chevron will release it's bright and shiny new management plan on the October 31st earning call for the quarter ending Sep 2016. The concept has been talked about here and all through Chevron but it now has very specific backbone. It is going to mean many more layoffs and of the 181 people working on "Project Propell" only 17 members of the team work directly for Chevron (Less than 10%). The other members are from BCG, Steptoe & Johnson, McKinsey & Company and the Brattle Group. For NA and SA here is the main takeaways that have been accepted by the company/board in principle and will be executed by January 1st..

° Chevron will centralize leadership/decision making/strategic planning for all BU's in Houston. The BU will have a small execution field team.

°This model makes 80% of all BU jobs expendable. One all encompassing finance group with field lieutenants at the BU. This is the example in the business plan for Project Propell.

°Investment decisions will focus extremely hard on internal ROI ( For us who I worked at other companies this is normal, at Chevron politics can make a 5% ROI beat a 35%, if a person is "Liked". Chevron has hired several key 3G capital assets managers to help secure better decision capability.

°Chevron will use unconventionals for increased production over the next 5 years and then with all of the work at the end of those 5 years being NOJV.

°Bane was secured on an emergency basis to help stabilize Chevrons debt concern. Both plummeting ratings and cost as rates rise.

°As one of the SVP's working for one of the above consulting firms elaborated, Chevron will be nothing more than an investment bank with BU's competing for capital.

°Chevron will only compete in oil in the unconventional plays over the next 5 years, no natural gas or Natural Gas Liquids. ALL of Chevrons Marcellus and Utica average is for sale. No asset spent at AMBU for 5 yrs.

°Midcon will have 24 rigs, all NOJV running by 2020 for oil.

°Chevron will reduce all internal consulting services (Think ETC) by 2018.

I will have more info on this over the next 4 weeks. The takeaway is as hard as the market is I believe Chevron is becoming the most unstable from an employee standpoint. But you will see a few more thousand gone in 6-9 months.

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What's the latest on this? OP still around?

Hahaha Chevron ABU were the WORST company I ever worked for, luckily I got out and got another job that I love, I suggest people doing the same !

All of this blocked from my Gil computer

Similar rumor with BP several years ago ... John Browne firing everyone, move company to Bermuda, setup finance company, everything NOJV. Didn't happen, for one simple reason: the risk of NOJV to advance a company is highly risky ... a company can only grow when they are in control of their money. The likes of ENI, Total, BP. EXOM, Shell, etc. controlling our company? Don't think so. I do believe CVX needs to reduce between 20 and 25% of staff (~15k), in this current low price environment, and they are half way there with ESP1. To do this will also require streamlining CPMS to root-out inefficiency and requiring holding management and projects accountable (which is a novel idea in Chevron). There will be another "ESP" in 2H 2016, but, Management will call it "Fall PDC", but, in the end, it will lay people off.

Where's the part about firing the top folks who blew 120 billion over the last decade and have $hit from shinola to show for it? Did I miss that bullet in the plan?

@1yho, it's pretty clear the Chevron brass in San Ramon know their BU management is only good for following their orders, but don't know crap about thinking on their feet, much less know how to properly handle downsizing their operations appropriately. At the same time, I'd say BCG is not that good at it either. They will use a logical approach to trimming the fat to reduce costs, but neglect completely WHO exactly should be let go. I suppose the Chevron HR folks muddy the entire process with their preoccupation in staying away from firing enough of the useless "protected classes". Chevron is going to come out damaged after all these layoffs. Hardly any of our management have the spine or heart to do the right thing, they just take orders and try to save their own asses.

Why do we always have to hire all these high-cost consultants to carry out these projects? What is the fat cat management doing to earn their ridiculous pay? I could pick up a phone and bring in BCG.

Are the Deadwood Dude and Butthurt Bob part of the new management structure?

So,let me get this traight, AMBU is done at the end of year with their assets being divested.

I don't believe the NOJV aspect.

Turning everything into NOJV would mean the end of Chevron. The only value this company has as an entity is the ability to find, produce, and market oil and gas. If we stop doing that and only act as an investment bank for our partners, there are cheaper places for our NOJV partners to get money.

The only way to have a future is to improve the way we execute projects and produce oil.

Or stop paying the dividend. Our cash flow problems would stop, but the stock would tank like it's going to do anyway.

OP, I can't help but wonder how you know this information.

Sounds like something that should've happened a long time ago.

They are going to change the name from Project Propel to Project Expel.

@dio - "Your suggesting mgmt wants to put millions of acres of land in other companies hands and risk those companies underperforming instead of having some internal control?" can't stop laughing. You can't be serious can you? i would rather risk "others" botching it up rather than have CVX management botch it up again as Proven on many occasions.

Thanks OP for sharing this info. It tells me that Senior Management is upset about the present situation and is talking about doing something to fix the issues! This is what most employees would like to see- some action!

Rconsultants are part of the problem, not the solution!

Thanks for the info but I have to wonder if op or those involved know what a mess our nojv system is....

Also assumes enough companies would want to operate our acreage and have the money or people to do so.....

Nojv all work would reduce reserve base too much.....

Your suggesting mgmt wants to put millions of acres of land in other companies hands and risk those companies underperforming instead of having some internal control?

So chevron going to ditch the etc technical group and move to a more centralized organization (think xom). I personally think this should be good for etc and type positions, if they are needed, hopefully they will utilize them better in a central structure.

So, is the idea that there will be 3 OPCOs? Combining Western Hemisphere BUs?

What is Project Propel? Is this the rumoured 2h2016 esp?

Details about how this impacts people are greatly greatly appreciated.

I was only privy to upstream. I did hear that it was hardcore in the meeting, as in leadership could not shirk responsibility or accountability of the string of failures. Lots of red faces in the room.

Interesting and makes sense. Any talk about Downstream or IT? Or was this upstream-centric only?

Thread regarding Chevron Corp. layoffs

Chevron will announce new management structure

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