Thread regarding Chevron Corp. layoffs

The low oil price environment is here to stay for the foreseeable future. That will mean more loss of jobs at Chevron. The company will shrink in assets and employee count, but will see an increase in contractors for certain jobs. The key for Chevron will be to retain or attract strong management positions that are filled by very capable employees who possess hands-on technical skills and knowledge. Chevron will endure this long downturn and emerge a smaller, stronger company, as long as the right people are calling the shots and don't lose sight of the important things.

In the low oil price future, it would make more sense to skinny down the employees and use contractors instead. I think 5 years down the road, there could be more contractos than employees. Stop hiring direct and convert the top performing contractors to direct when they prove themselves. We pretty much do this overseas.

That said, you have to manage thwm well and chevron is short on management talent.

It sure svcks to be a hard working contractor and not get the deserved recognition from the client employer. Chevron is not the only Fortune 100 company who has this poor trait. I've known lots of good contractors at Chevron during my working years. I've always given credit where credit is due. At the same time, I've been critical of lazy contractors. I known it's difficult sometimes for the "green badges" to speak up, but working overtime on a regular basis and not getting compensated is over the top. I personally could not let that abuse go too long.

I was (past tense) a contractor at Chevron in Houston. I only had 3 month contracts and was constantly reminded that I had to prove my value even though I did the work of 2 people at least half the time, was constantly denied requests for assistance, often worked 90-95 hours per pay period but only entered 80 on my timesheet because overtime was denied, received no outward support from management and had a coworker take credit for all of my work for her PMP review. Chevron definitely has a cast system of blue badges and green badges. Not all contract people have cushy jobs. The same is true for regular employees.

I must have been using new math from common core standards. The answer is $75.6 million per year times 2 years at a penny per share equals $151.2 million per year or $37.8 million per quarter.

-4zze, that's $18.9 million more per QUARTER, not each year. Add it up now.

Okay, there are 1.89 billion outstanding shares. Chevron increased dividend by a penny in Q4 last year. That equals $18.9 million more a year in dividend payout. Another penny late this year will be the same increase for 2018, for a total of $37.8 million increase over 2 years.

What doesn't make sense to me is the loyalty chevron shows to contractors versus staff employees. I actually had a contractor trash me on a 360 review which stayed on the system permanently after calling him out for flying half way around the world for meetings and not show up because he was too tired from pining and chasing skirt

I'm collecting the Chevron annuity. I hope CVX does not go belly up by raising the already unsustainable dividend yield. I know the PBGC is there as a safety net to protect pensioners up to a max of $4200 or something like that, but I simply don't trust our Federal government honoring a pledge for too long. If Chevron goes by the wayside and the PBGC comes to the rescue, just how long can I trust my monthly annuity to continue without getting a reduction down the road? That damn JW and the dividend needs to be cut for everyone's sake.

It's all about the dividend. JW has already said the dividend will increase this year to reward investors and maintain dividend aristocrat status. This dividend is still being paid with borrowed money at the tune of approximately 2 billion per quarter. This debt will be paid from (hopefully) higher future earnings. What if crude dies not go to $60 - $70 in the next one or two years? There is good reason to be nervous about Chevron stock.

Did you see the sudden nose dive for CVX stock with 12 minutes to go before the NYSE bell ring on Friday? Nervousness.

SEC Form 4 filing for Watson, John S. on 3/13/2017 showed a acquisition/disposal of 125000 shares at the following:

acquired 125000 $74.08 $9,260,000.00

sold 125000 $110.30 $13,787,500.00

NET $4,527,500.00

Total Ownership

201794 $14,948,899.52

76794 $8,470,378.20

$23,419,277.72

401K 26525 $2,925,707.50 (@$110.3)

Its good to be the king!

-3pzj, if that's the case for you, my advise is to stay on the payroll until you draw your last breath. But, I'm being facetious. I know you're joking.

Can not live on a meager $250,000 yearly allowance.

A general rule of thumb (very subjective) says that to retire and continue enjoying the same standard of living and lifestyle would require 60% of the income you were earning in your last year at work. Again, this is very subjective and depends on several factors. In older age, most retires will no longer have rent or a mortgage to pay or they downsize their home, kids have moved out, they no longer need more than one vehicle, they cut back on extravagant living, etc.

I congratulate anyone who is able to derive an annual $100k cash flow in retirement for the rest of their lives. Here in Houston, with no debt and a paid-off mortgage, you can retire securely on $35-38k per year. Of course, if your lifestyle demands lavish vacations, needy children and having to drive around new cars all the time, then throw in another $25-30 to cover those things. "Living Large" is more of a state of mind than tallying up your lifestyle in what you spend. To each his own.

I just have to wonder about these replies about having all this money coming in for the comfy retirement lifestyle. If your house is paid off and there is virtually no debt, then your personal expenses should not exceed 2k per month, and that is being generous. Saving everything is great, but it will all go to wifey or kids when you die. Might as well enjoy yourself and spend 50-100k a year being foolishly extravagant. Maybe put your assets in a living revocable trust.

2zdt. So how much does your "living large" lifestyle cost each year.now that your retired? Is 100k high or too low? That was the OPs point. Happy you can do it.

2zdt

I think you misinterpreted my comment. I was laid off last year at 55. My retirement annuity in two years is in the order of 100k per year. I also have savings and 401k which will cover the near future and additional needs in future, earning circa. 40 -50k per year. My question was how much does an average retiree, per your description, need to sustain that retiree lifestyle. It was not how much you need to earn while employed to be ready for retirement. I am already experiencing how retirees change their focus on spending when there is no longer a constant refill of dollars each month. I have no debt, no mortgage (own house) and no college fees to pay (while working was bankrolling 100k a year for two). So when working my expenses were high and ate a lot of salary. My question was merely can one have a fruitful retirement on 100k per year in retirement and what are people's experience in lifestyle versus income. Hope this clarifies.

Do you expect or what to work forever, 2jqs? I don't think so. One day you'll want to slow down and enjoy life while you still can. Living large in retirement doesn't mean the same thing as living large while working or earning $100k or more. Do you have any idea of how most Americans live in retirement? Again, I suppose you don't. In my case, living large is knowing I don't ever need to work again, having no debt, owning my home, being able to pay my bills easily and eating well, taking a relaxing trip or two every year, being healthy and having health insurance. All that and more from a guaranteed lifetime income stream and not having to depend on social security. How do you refine living large?

Living large in retirement compared to living small at Chevron.

1gxv. What is living large in retirement ? What annual income ? Curious to know what folks think they need for a fruitful retirement. I personally think $100k per year should do it. What does anyone else think and what are your expectations.. foreign travel, RVs, boats...... its all about goals and I'm curious to get some feedback discussion........if you're game !

Chevron is one $crewed up company. It laid off far too many useful people and kept many losers around. I don't understand that at all. I guess the PC bunch running things will keep their blinders on no matter what. All they care about is sticking around as kind as possible while the company crumbles. I can only thank God my 32 years were rewarding enough to get out last year with a lucrative severance and able to live large in retirement. To everyone else still there because you must; make sure you have a Plan A, because there's likely no Pkan B.

@MiZsp7J-nge, Good point. Chevron loves these useless forums. And you are right! There are still a lot of expats in the US living cushy life. A lot of laid off US talent could be doing all that for much lower cost. Similarly a lot of US citizens floating around the world as expats, most of them non essential. Chevron let go the wrong people. Somebody should give a shout out to Trump, so he can start tweeting about Chevron.

Decision. Analysis Forum will have all the answers. Less than a year after ESP layoffs, we are back to holding useless forums, folks going on boondoggles and expats extending their cushy US assignments with paid private schooling. Collective memory loss of the pain so many families went through?

Grow Up Chevron !

Saudi is increasing production. OPEC is in a disarray. Oil can quickly drop down.

This bear market is somewhat unique. We have never had before this kind of low cost shale producing segment exerting a counterveiling influence the Actions of the OPEC. So expect this to drag on. Oil majors have to get used to this reality.

Burger flipper is the new geophysicist. Waiter is the new petrophysicist.

$50 is the new $100

Unfortunately. That seems like writing on the wall.