Thread regarding Chevron Corp. layoffs

The industry must go through a period of consolidation to reduce cost in this oil price environment. This will be accomplished by either bankruptcies, acquisitions or mergers.

Just too many people in this industry. Too much redundancy.

@NY1wSAW-3dkl -Right on.

The Chevron train is still able to pay dividends each quarter, but it knows it is quickly running out of track. The reality of slightly having to cut the dividend (worst case) or not raising it the next time to keep its notorious status, (the likely case) is like having to tap on the brakes to gain more time for oil prices to go back up before derailing the train.

I am fairly certain the Chevron dividend will either be cut slightly or will not see an adjustment the next time it's expected to increase in order to retain its "Aristocrat" status after having had a 25 year track record. Either way, the dividend yield will remain attractive for investors.

College engineering graduates. Stay away from this company. You have no long term future. Engineers are at the bottom of the feed chain and you will be the first to be layed off. There are many many other companies out there that will appreciate your commitment and dedication. This company will pay for your MBA then lay you off the next year due to greedy management preserving their jobs. This company's management is incompetent and destroying all of the hard work of past American generations post ww2 Texaco, gulf oil, unocal. Seek employment at amazon. Stay the hell away from Chevron

2mip-Relative to an acquisition, a market cap based merger is indeed relatively low cost to essentially no cost. There is no multi-billion dollar acquisition cost preceding layoffs. Besides what is a one-time severance expense compared a recurring annual salary savings. You make it sound as there are no cost savings associated with downsizing and we all know that is not true as CVX has a history of layoffs.

CVX we are better than this. Hopefully not all are this dense.

-1jai is not correct that the 10,000 layoffs would not cost anything. I believe the change in command and control provision would give all 10,000 employees laid off 4 weeks severance pay for every year of service. I wish I had that last year, that is a much better deal than what the laid off employees received last year.

Its not a bad idea - actually it would be better to buy the assets that you want (pick and choose the good ones) then do a straight merger, but if Chevron has a poor cash position merger as you mention may be a good way to at least consolidate the low break-even cost assets, then they could continue to sell the ones they don't want.

That scenario is not out of the realm of possibilities, 1jai. The heartburn between the merging companies will be about who will be put in the top management positions.

-1yyv, this would be structured as a market cap based merger. There would be essentially no-out-pocket cost involved. This would not be an acquisition.

Following the merger, there would be a workforce reduction of approximately 10,000, equivalent to approximately $2 B in a cost reduction synergy, again at essentially no out-of-pocket outlay. COP has 13,300 employees as of 2nd quarter 2017 earnings release.

There needs to be and there will be industry consolidation. CVX will come out stronger.

If you think management is bad now, imagine what it would be like if an activist investor took over. They would be looking to increase the dividend even more whether Chevron had the money or not.

You can not buy large and still pay the dividend! We do not have the vision to pulloff this large of a grab... and watch what out you wish for

COP is a merger topic that does come up from time to time so it is certainly possible. They have good low cost North American assets. But with a merger you are looking for synergy savings, but how about fixing CVX culture from the inside? Im wondering if CVX could be the target of an activist investor at some point. Pushes for management changes (more technical?) etc could yield good cost savings.

The only way a merger will work is to

fire all the heads of Chevron management and let the other company steer the ship. New company and new culture.