How many teams are getting the plan guidance to stay flat Opex, even at the expense of profitable sales?
I have now heard of businesses in EMPS offering up significant volume/margin cuts for the sake of reducing Opex for 2023 with the only rationale provided "Darren promised flat Opex to investors."
It has become a huge distraction as everything from growth to base business is now faces potential cuts that will hurt earnings and cash flows. I am trying to gage how far this request has spread.
Definitely back to normal, any VPs or execs in the country this week? I know of MANY traveling, gotta make up for all those freq flyer miles not collected the past 2 years…
Many at the campus are back to wide open travel, while others are being told zero travel. So I guess things are back to normal.
You say nothing is getting done, yet more oil and gas is coming out of the ground in Permian and Guyana. What you really mean is, no return on investment is being seen in the billions of spend on things like digital and global services.
It’s pretty simple to understand… XOM wants to be profitable with oil at $45/barrel and natural gas at $2.50/mmbtu + be able to:
To do the things above, we must get our CAF and OpEx lower, which means not backfilling retirees, less hiring, more moving things to India, and more leveraging of 3rd parties and MSPs for execution. Get on the train… or get off if it.
The company is already dysfunctional. Nothing is getting done because of these stupid decisions. Procurement is paralyzed. EMIT doesn't work. Law is non-existent. Absolutely nothing is getting done. All those projects will soon stop. The budget for research has been cut almost 20% with respect to pre-COVID. Everything is messed up. And now OPEX has to be flat with a 9% inflation rate. This is stupid. Just stupid.
Just look at our CAF , cost above field, we have far too much overhead
According to Mckinsey Consulting, our OPEX is much higher than Shell, Chevron, BP, and Total Energies.
OPEX control is key to long-term viability, especially when we are in last place among the major oils.
Because at a time of record profits and increasing demand, it makes sense to stick to a budget determined when the price of oil was half what it is now. We adjust budgets when the price of oil is lower than expected. Why not the other way around? Makes too much sense? Too afraid to show “courage of conviction” to the stock market?
We are getting guidance to cut cost, yet at the same time we are hiring like crazy. We will finally get fully staffed just in time for another round of layoffs.
That’s the guidance we got in Baton Rouge, stay flat to the 2022 plan…..so offset inflation plus some. How does that work when the business signal is max production? Naturally there will be more cost when you push the units harder.
That’s all XOM knows how to do. Zero innovation
Yep hearing this in EMPS Baytown
The more I hear about things like this the more I tend to believe that the xom higher ups have little to no confidence in oil prices remaining high over the next few years. Like it's a bubble just waiting to pop. Maybe not immediately, but perhaps sooner than one might think.
And the funny thing - Opex usually has tax deductibility almost everywhere.
That documentary must have really cost a bundle!
Hearing same here in emtec. How can you be flat when inflation is eating your lunch, plus ppl traveling.
So basically have to go down to offset inflation, travel. You know what that means
Guess what “cuts” mean
ExxonMobil only knows how to run as a low margin commodity business. Cut itself out of existence.
I know of one site at least being asked to cut 20%
DW NSI/PIP