Thread regarding Chevron Corp. layoffs

The plan is to maintain the dividend and layoff employees.

It also does not equate to covering 8+ billion dollars in annual dividend payments.

The Wall Street Journal (4/5) reports analysts expect oil prices to stay below $60 a barrel for 2017, the third year in a row, as US shale drillers put OPEC’s plans to raise the price through output cuts in doubt. . A poll of 14 investment banks predict that Brent crude will average $57 a barrel for the year, while WTI will average $55 a barrel.

Difficult to see much of a CVX "bounce back" in 2017 given this pricing. 15% increase in the commodity price plus decreasing staff to 50,000 does not equate to annual profits north of $5 billion

Rich Chevron culture? That is a good one. Assets maybe, culture no. Company needs to ditch Chevron Way B.S, and all other slogans and PC crap, 50% of the meetings, 20% of all management, 33% of all team leads, supervisors and paper shufflers. Accountability is only for basic staff employees and contractors, not team lead, supervisors or management.

Look around and what do you see?

The new model will be oilfield service companies coming in and taking over duties. Now granted they may not have all the qualified people to do the job and execute correctly yet but within a few years they should be up to speed. Growth and change may be painful.

There will be a cost to Chevron in terms of efficiently exploiting assets and the rich Chevron culture but then again things are changing.

The oilfield service business will have to change too. Some cultures are still in the non-investment phase and entertainment phase. Some service companies lean to technology more than others. Some are more focused on execution.

It is critical for Chevron supply chain to carefully look and evaluate short term cost savings to the cost of long term growth.

1vqd, you must work in the Corporate Finance & Accounting Group or are the Comptroller himself. Well explained.

ioh-You do not understand the XOM reserve adjustment...which is different from a financial impairment charge. XOM restated proved reserves. No financial write off and no impairment charges. If oil prices rise above $50/B, then the reserves can be added adjusted again and added back. Cash flow is not impacted as the reserves are flowing and generating net cash, XOM is simply flowing archane and prescriptive SEC rules on reserves reporting.

Clearly and logically said, 1vrg. It's unfortunate for many good people who will be losing their jobs.

In a recent article in the WSJ, it clearly states that at $50 per barrel oil Chevron isn't close to profitable. This quarter's dividends paid for by sale of Indonesian geothermal assets. It is likely that CVX isn't profitable at $60 per bbl without continued asset sales to fuel the dividend. For $70 per bbl crude without continued selling of assets, CVX could probably be profitable if they contine to pare their workforce which would need to include some management to match E&P opportunities.

Nice comment.....NOT!

"By the end of 2017, you'll see the industry implode. Mark my words."

I guess you can expect comments like that on here. Seems like sour grapes to me.

Chevron is leaner and can look to free cash flow from recently completed large-cap projects in 2017 and onward. It does not take a large uptick in demand to tilt the profit needle largely forward in Chevron's favor. The company has been methodically and carefully adapting to changing market conditions, so time to get with the program.

This is the beginning of a protracted downsizing of Chevron. The company will continue for a very long time and it will do well, but at the expense of many employees jobs. As far as Leadership's plan to succeed, that will come down to "dog-eat-dog". They most certainly will focus on their own self-preservation before looking after any of the employees they manage. It's only natural. Wait for the in-fighting to escalate.