fc2112 said:

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If you work in the O&G industry, you need to save about 50% of your paycheck during the boom times.

It's why I went with a stable industry like aerospace (lol)

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I went from O&G service company to specialty aerospace chemicals. Enjoying the stability

Feel terrible for these folks, but hope this is isolated and not a greater sign of things to come.

Already been happening with others.

Shell did it in 2024: https://finance.yahoo.com/news/shell-plans-20-cut-workforce-130600502.html

BP in 2025: https://www.reuters.com/business/energy/bp-cut-over-5-workforce-ceo-cost-cut-drive-2025-01-16/

M&A activity will lead to more: HESS (Chevron), Marathon (Conoco), etc.

FlyRod said:

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Dan Scott said:

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Wow that's a huge amount of people. 57% of their employees are in the U.S. so assuming most of the cuts will be there meaning a lot of Houstonians. It's dangerous to be an O&G employee even in the OK periods.

https://www.reuters.com/business/energy/chevron-announces-15-20-layoff-global-workforce-source-says-2025-02-12/

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Companies typically start layoffs when a particularly dire economic downturn is coming. They often get data well in advance of the general public.

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They don't have any private data except for their own internal sales and expenses and even then, only for a quarter since they are publicly traded. They have no more knowledge of a downturn in the general economy than anyone else.

The article says by the end of next year. So over a two year period, they will reduce 20%. Much of that will be through attrition I'm sure. This seems like a nothing burger to me.

Hasn't Chevron been big in renewables like solar? Perhaps with that gravy train ending, they took action in that arena.

Sasol also announced a big layoff this week.

The average number of layoffs in the US each year is 18-20 million. Just sayin'

No. Has some solar for internal operations, but nothing else.

aggie_wes said:

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This isn't really an "OK" period. It's a flat period of low-medium activity. O&G companies don't really know WTF to do with a flat market.

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Oh they know...they fire people every time it happens.

Logos Stick said:

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The article says by the end of next year. So over a two year period, they will reduce 20%. Much of that will be through attrition I'm sure. This seems like a nothing burger to me.

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It's not a nothing burger.

The vast majority of jobs will be terminated by end of October. Minimal hold overs into '26.

Logos Stick said:

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The article says by the end of next year. So over a two year period, they will reduce 20%. Much of that will be through attrition I'm sure. This seems like a nothing burger to me.

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Chevron is relocating their corporate office from California to Texas, so I would expect some natural attrition there. They are also trying to get out of the refinery business in California.

twk said:

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Logos Stick said:

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The article says by the end of next year. So over a two year period, they will reduce 20%. Much of that will be through attrition I'm sure. This seems like a nothing burger to me.

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Chevron is relocating their corporate office from California to Texas, so I would expect some natural attrition there. They are also trying to get out of the refinery business in California.

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The folks moving are the executives which make up small portion of the layoff, those folks have already secured their next position. The vast majority of the workforce reside in Houston and the individual business units

Dan Scott said:

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Wow that's a huge amount of people. 57% of their employees are in the U.S. so assuming most of the cuts will be there meaning a lot of Houstonians. It's dangerous to be an O&G employee even in the OK periods.

https://www.reuters.com/business/energy/chevron-announces-15-20-layoff-global-workforce-source-says-2025-02-12/

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BP is doing something similar between now and June. Eventually BP is going to run out of employees to layoff.

twk said:

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Logos Stick said:

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The article says by the end of next year. So over a two year period, they will reduce 20%. Much of that will be through attrition I'm sure. This seems like a nothing burger to me.

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Chevron is relocating their corporate office from California to Texas, so I would expect some natural attrition there. They are also trying to get out of the refinery business in California.

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Interesting. I knew they were moving but hadn't heard about getting out of Calif refining.

Quote:

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Interesting. I knew they were moving but hadn't heard about getting out of Calif refining.

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WSJ (paywall): Behind the oil industry's biggest divorce

Quote:

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California has more than Chevron headquarters at stake. The company, which operates two of the largest oil refineries in the state, has considered the possibility of ceasing production. That would raise gas prices further for California's more than 27 million drivers. Chevron refineries make up a third of the state's gasoline-production capacity.

Any decision to close or repurpose refineries would depend on whether California imposes more regulations, among other factors, said Andy Walz, who runs the company's refining, pipeline and chemical businesses. California's stringent fuel-quality specifications, initiated to curb harmful emissions, make gasoline more costly to produce compared with other states, industry analysts said.

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Quote:

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If Chevron decides to sell its century-old fuel-making plants, it will be tough to find a buyer for the properties, which encompass nearly 4,000 acres in Northern and Southern California. Among the obstacles: environmental liabilities and a shrinking pool of buyers.

"We used to have competitors," Walz said. "They're gone."

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CyanideJenkins said:

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Dan Scott said:

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Wow that's a huge amount of people. 57% of their employees are in the U.S. so assuming most of the cuts will be there meaning a lot of Houstonians. It's dangerous to be an O&G employee even in the OK periods.

https://www.reuters.com/business/energy/chevron-announces-15-20-layoff-global-workforce-source-says-2025-02-12/

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BP is doing something similar between now and June. Eventually BP is going to run out of employees to layoff.

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What it really means:

BP is doing something similar between now and June. Eventually BP is going to run out of American employees to layoff

FTACo88-FDT24dad said:

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No industry hides the incompetence of its CEOs and BoD by gutting employees like the O&G industry. I have been watching it from the inside since 1998 and it never changes.

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Absolutely this.

fc2112 said:

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If you work in the O&G industry, you need to save about 50% of your paycheck during the boom times.

It's why I went with a stable industry like aerospace (lol)

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That's why I went to a stable industry like software.......oh, wait!!

I imagine they are also de-emphasizing non-core energy business elements like renewables and whether that previous administrations and regulators have all but forced them to dabble in for ESG appearances.

NPH- said:

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HoustonAg9999 said:

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learn to code

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Isn't AI quickly making this obsolete?

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No.
Don't let Linkedin "influencers" and moronic CEOs (who have a vested interest) fool you. Think for yourself. Use common sense.

Dan Scott said:

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There's a billion people in India. They would gladly take an office job at 10-20% a U.S. employee. We've already shifted jobs to Argentina, Brazil, and Hungary, and Czech Republic, and Thailand. India is an endless supply of labor.

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The US will soon become India, Bangladesh, Indonesia.
Enjoy.

TheEternalOptimist said:

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Dan Scott said:

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There are 127 job postings at Chevron.

9 in the USA
73 in India
19 in Argentina

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This is RIDICULOUS ^.

I work for SAP. And if I leave my job.... my replacement will be in India or the Philippines. They will not hire for my dept in the US, Canada, or Western Europe anymore.

Companies should have the opportunity to reduce, significantly, their corporate tax burden and payroll tax burden, by keeping employees here at home in America.

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Finally the light bulb turns on.

For all these years the Boomers in top management were ripping us off by getting tax breaks and hiring in India. While Steve in the US was homeless as he could not get a job. And Mr CEO told him "learn to code" (while sending all coding jobs to India).

The market has taken a yawn on this news.

winmck said:

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My son got hired by a drilling company today. Drill baby drill!

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Poke manager?

I had the displeasure of planning for the cuts concurrent with future headcount growth twice. BCG will design the new organization charts per whatever organization structure is the new hotness, there will be a big production about how you re-apply for jobs, but 95% is pre determined in advance including who is cut, with the remaining 5% give or take allowing for moving the special people in the WASP / DEI club around to a "development" role.

For those of you who get let go, congrats! Just remember if you are managing people post Chevron to ask yourself, "What would a CVX manager do/say in this situation?" Then do the opposite, and you'll be admired by co-workers, praised by owners, and sought out by industry peers in no time.

Logos Stick said:

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The market has taken a yawn on this news.

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Is the market talking notice of the ending of the war in Ukraine?

Also, since gas prices went up when that war started, will the go down now that it's ending?

infinity ag said:

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NPH- said:

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HoustonAg9999 said:

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learn to code

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Isn't AI quickly making this obsolete?

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No.
Don't let Linkedin "influencers" and moronic CEOs (who have a vested interest) fool you. Think for yourself. Use common sense.

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I am thinking for myself and not using any of your references as insight into me asking this question. You'll have to be lying to yourself if you say that AI does not have an impact on generating code vs. manually doing the same. I get there is little nuances here and there that right now a human can do better, but give this time there is no way that AI won't outperform humans in ability with respect to that industry. You are lying to yourself if you believe otherwise.

infinity ag said:

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Dan Scott said:

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There are 127 job postings at Chevron.

9 in the USA
73 in India
19 in Argentina

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hahhahhahah

I hope you all are smart enough to see the scam.
We are getting ripped off in America. The CEO gets rich. Indians have jobs and they get rich.

We get on food stamps and welfare. So much for "US style capitalism" and "free markets" that everyone sings praises of.

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This sounds exactly like free market capitalism to me. I absolutely want companies maximizing profits for their investors. It is their fiduciary duty.

If you are truly exceptional you will have a job. If not, why shouldn't a business employ the cheapest person that can perform the work

HoustonAg9999 said:

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learn to code

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Learn to do prompt engineering.

Chevron bought REG (Renewable Energy Group) in 2022 and, as far as I know, REG hasn't done sh*t before or since

FTACo88-FDT24dad said:

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No industry hides the incompetence of its CEOs and BoD by gutting employees like the O&G industry. I have been watching it from the inside since 1998 and it never changes.

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Since 97 for me. The problem is we are a long term resource depletion investment company that has to manage to the whims of quarterly reporting and the knee jerking of spot oil and gas prices. That presents conflicts that leads to the reality that occurs. That said there's always horrible mgmt and the reliance of just regurgitating what BCG or McKinsey tells you in terms of what to do.

BigOil said:

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FTACo88-FDT24dad said:

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No industry hides the incompetence of its CEOs and BoD by gutting employees like the O&G industry. I have been watching it from the inside since 1998 and it never changes.

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Since 97 for me. The problem is we are a long term resource depletion investment company that has to manage to the whims of quarterly reporting and the knee jerking of spot oil and gas prices. That presents conflicts that leads to the reality that occurs. That said there's always horrible mgmt and the reliance of just regurgitating what BCG or McKinsey tells you in terms of what to do.

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Amen! They could simply take the $10mm per year that they pay "consultants" and use it for G&A and save a lot of jobs until the next recession.

The only folks who have it worse than us upstream guys are the service industry people. Those poor people get hammered coming and going and it's relentless. The average service sector employee is like a salmon who knows his only purpose is to literally work himself swimming upstream only to die.

PS - I would add "and replacement" after "depletion" but you're 100% right.