Exxon to cut 2,000 jobs. 3%-4% of its workforce.

quote:

---

AI to do all planning.

---

Have you met some of their planners? I’m not so sure that’s a bad thing

quote:

---

It's too bad our Fed, State and Local governments can't do the same

---

Federal govt has removed over 300K employees this year, or around 12.5% of the workforce

They have been cutting nonstop for going on 5 yrs now. Look for headlines back some and you will see the original aim was 20% of the company. That has slowly risen to 40% of the company.

quote:

---

They have been cutting nonstop for going on 5 yrs now.

---

Doesn’t Exxon also do forced ranking of employees for year end reviews, and those at the very bottom are let do to make room for a new wave of college grads/interns who were offered positions? Like the bottom 5-10% or so?

I believe a year or two ago Chevron had their folks sort of all reapply for their jobs.

Chevron does it every so often…they call them ROMs….they did one in 2023…then back in 2015.

quote:

---

Doesn’t Exxon also do forced ranking of employees for year end reviews, and those at the very bottom are let do to make room for a new wave of college grads/interns who were offered positions? Like the bottom 5-10% or so?

---

Yes, typically bottom 10% are put into a performance improvement program that’s really ~6-months to hit a home run or look for a new job. Typically they don’t “lay off,” they just cut more of the tail off. There’s also attrition, retirements, etc.

Some of this is due to the planned RIF from getting Pioneer onboarded domestically. Those folks had like a 1-2 year runway to figure out what they wanted to do with very generous offers either way.

H/T to a fellow TDer for sending me this. Goes with the theme of this thread.

quote:

---

Big Oil Is Getting Leaner and Leaner

Exxon XOM -1.94%decrease; red down pointing triangle Mobil is slashing 2,000 jobs worldwide, it said Tuesday, the oil industry’s latest mass layoff as companies adapt to anemic oil prices and get more efficient at extracting fossil fuels.

The oil giant’s layoffs, amounting to about 3% of its global workforce, culminate a yearslong push to consolidate offices and thin its ranks as it targets billions of dollars in annual structural costs. Exxon’s head count fell about 19% to 61,000 between the end of 2014 and the end of last year, regulatory filings show.

---

quote:

---

Chevron, ConocoPhillips and BP earlier this year all announced layoffs that will cut thousands of jobs. The companies have said they expect the moves to yield billions of dollars in savings. Notably, the reductions aren’t expected to affect the volumes of oil and gas that the companies produce.

The job-shedding will further shrink the industry’s rank and file after a yearslong diet of layoffs, attrition and corporate restructuring that has made Big Oil much leaner.

---

quote:

---

All told, the number of U.S. workers in oil-and-gas extraction has dropped by nearly 80,000 since 2015, according to the Bureau of Labor Statistics. Meanwhile, U.S. oil production has climbed 45% to a record of about 13.6 million barrels a day over that same time, according to the Energy Department.

“These companies are clearly the best in terms of the application of technology, the best in terms of intellectual property, intellectual capital,” said Ed Hirs, an energy fellow at the University of Houston.

The oil industry’s workforce in the U.S. peaked in size in 2014 just above 200,000, when oil fetched more than $100 a barrel. That year, the Organization of the Petroleum Exporting Countries decided to relinquish its role as a moderating force on crude prices, allowing prices in 2015 and 2016 to plunge to levels low enough to send scores of American drillers into bankruptcy.

---

quote:

---

None of Exxon’s job cuts are in the U.S., according to a person familiar with the matter. Almost half the cuts are in Canada, at Imperial Oil, majority-owned by Exxon. The affiliate plans to reduce its workforce by 20% by the end of 2027.

---

quote:

---

The sector is in a far better financial shape than it was during previous drops in oil prices. Wall Street has demanded that companies pay down debt and return cash to investors in the form of buybacks and dividends, and drillers have healthier balance sheets that can better weather price swings.

---

LINK

quote:

---

I have no idea why anyone would want to work for a company that does this.

---

My understand is Exxon has a very lucrative retirement program. Or maybe used to. They did scale some matching back during the COVID crash, but maybe they brought it back to 2019 levels?

quote:

---

Yes, typically bottom 10% are put into a performance improvement program that’s really ~6-months to hit a home run or look for a new job. Typically they don’t “lay off,” they just cut more of the tail off. There’s also attrition, retirements, etc.

---

Yeah, what's worse than that is they are separated by business groups. So all your employees may be performing well but someone has to be in the bottom 10%. You are sometimes being ranked by someone who doesn't even know what you do on a day by day basis.