Thread regarding Chevron Phillips Chemical layoffs

AI already outperforms humans in strategic forecasting. It can run simulations to find the optimal decision every time. It eliminates fraud, insider trading, and unethical behavior. The biggest incentive is board control.

Companies are quietly moving toward AI-assisted decision-making, AI-driven analytics, automation of executive reporting, and algorithmic management. The largest salaries are at the top, and AI is already operating above their output. In the future, all that will be needed is the board to approve AI generated executive initiatives for oversight. Every step a company takes toward AI, is a step closer to AI running the entire ship. For now, the ground work is being created for what looks to be a future AI takeover.

@r6f I don't know why any company needs CEO and VP when AI can do everything for the company. They are overpaid. The company can save millions of dollars by replacing them all with AI. AI does not need pension or retirement. AI doesn't need medical benefits or time off. AI will work 24-7 and 365 days a year. It will make all the right decisions they couldn't.

@r22 LTI - Let’s Takeallofthejobsto India

@r22 offshore and onsite contractors taking over everything. It was sold as a good thing but good luck finding anyone outside of LT that has anything good to say

Outsource is coming for more jobs in the future.

We lost the best HR person we had here at Orange- K.B. because they required her to commute back and forth between Orange and The Woodlands, even though they knew it wasn’t sustainable. It was obvious the HRLT was using this as a tactic to push her to resign so they wouldn’t have to pay a severance. It was wrong, and it shows exactly what kind of leadership we’re dealing with!!!

@qq6 , I'm a big dummy, but what is LTI?

@nsv people should go and calculate their benefits for pension. I calculated mine. If I were to be laid off and wanted a lump sum out, it would cut my benefit by 50%!!! I’d have to wait until 65 to then and only then get the 100%. It also doesn’t “grow with time”. Ugh!! I know a pension is meant for your older age but hurts to know it’s all captured in there. Of course I suppose it’s about when you started and the plan specifics for everyone…

@qt0 No more planned layoffs this year. So maybe some unplanned layoffs? CIO is looking to layoff more people with AI technology. Scheduling, procurement they are looking at you! Get ready for the new AI bot to handle all your scheduling needs. There won't be a bonus next year. Only the VP get their special bonus.

how in the world this thread has 200K views and 1K replies?

Is there layoff this month?

I bet the current CIO would get another similar job for a company with market cap more than a $Billion. Clueless, deer in headlights. Same with her most of the cronies.
Everyone's PII is available to download with a simple click by any one working in IT. Any personal info that you can think of. Even today. Europe folks can only pray. Any one with virtual desktop access can easily get PII data. IT hopes that there are no crooks in LTI or offshore. With all spamming, hacking from offshore, you can bet that there will be crooks in LTI. Even if data is breached, you won't be informed. Keep monitoring your identity.
IT is fricking incompetent.

@qep my guess is a lot of people retire or leave after March and they get their bonuses. I see a lot of people updating their resumes and getting ready for departure, and I think leadership is anticipating this.

Once certian projects are finished they will lay off the rest of that department and let L T I take over. Congrulations on working yourself out of a job. HR will mostly be replaced by a computer. Get used to talking to a machine. Middle management will be gutted. They won't be needed since LTI has their own management in place. Projects will be downsized further and support groups dismantled and/or gone. Operations you aren't safe. They are looking at you. Anyone who is of retirement age will be next. If you have several complaints in your file you will also be gone. There won't be anyone left at cpchem except for a few in corporate. You are a number, remeber that. They don't care. They never did.

@OP To all those Millennial managers and LTE members who offered up your older but experienced Gen X subordinates for layoffs when age was a factor: Think about the younger Millennials and Gen Z-ers in their 20s laying in wait for you. You are the next generation to be cancelled because of your age. It's not if but when. You'll get to experience the depression, the loss of income that can't be replaced, the anxiety of existential crisis, the cruelty, the brutal truths you denied. And if you haven't noticed, Gen Z is already hostile toward you. They're already positive they know better than you. Then you'll find yourself drifting out into the unknown on an ice floe. If you're 40 now, you may have 10 more years before they mark you as disposable. Won't matter what you think you know or what expertise you think you bring to the company. Meanwhile, the retirement age is going to go up. That means you may have a rough time supporting yourself for 15 years until your benefits kick in. This is cyclical. We were just like you, and now we've paid our dues. Your turn is next. It may not help your career to be more accepting of your older employees, but it might lessen the karmic blow.

@qay it took over a month for me, too. Definitely keep bugging your HRBP about it. Don’t forget to collect your money from Shine, health rewards etc too.

@qay For me, six weeks — four weeks after I signed the severance paperwork. I kept in contact with my former HR person and they communicated with me. Hope it comes soon. I know how the waiting feels.

@q1b for those of you that went in the first round how long did it take them to pay your severance? I was told maybe today but that didn’t happen so I’m wondering how long is it actually taking them- thank you for any information

@q1b what will the reorg look like?

Next layoff will be late Q1 or early Q2, targeting April timeframe. That layoff will hit manufacturing and it will be deep and wide across all manufacturing sites. Once layoff is complete then a mass reorganization will take place.

@py4 I don't understand why Mommy and Daddy are not insisting on a leadership change. There's been a lot of internal frustration and concern over mismanagement of USGC II. Surely we haven't been able to sweep that under the rug.

I’m not an insider, nor am I an expert, but here are my thoughts for the mid to long term future. Every comment, even the pessimistic ones, are predicated on a mismanaged USGC II project. No one has talked about what happens when these projects are finished.

Here’s some options I foresee happening.
1a The projects go well and they repeat what they did with 1594 at Cedar and give the new unit all of the contract margin ethylene lbs. The expansion looks great but spot margins for the rest of the ethylene fleet get skull-fu---d and a lot of units go in the red financially.
1b The projects go well but they don’t move high value lbs to GTP so the expansion looks lack luster. Mommy and Daddy get pi---d and start demanding their money whatever it takes
2 the projects don’t go well… let’s not talk about that one

Anyone want to throw in some thoughts?

@p56 I'm not the original poster but you can see where this could be heading by looking at what Moody's did late last week — revised CPChem’s credit outlook from stable to negative. I asked ChatGPT about what it means.
Q: What does the negative outlook mean?
A negative outlook means Moody’s sees elevated financial pressure and will be monitoring how the company responds over the next 12–18 months. Note that they didn't downgrade our rating, just the outlook. Using a school analogy, our GPA remained the same, but the teacher is worried we're going through a tough time and not handling it well.
Q: Why did the outlook change? Who or what is responsible?
A: Moody’s identified 3 major contributors:

1. External market conditions — a major factor (not our fault)
   This is the single biggest driver and, obviously, we don't control that.
   The global petrochemical industry is in a deep downcycle due to:
   -- Oversupply of ethylene and polyethylene
   -- Slower international demand
   -- Softer export economics (we still sell products but make less money doing it)
   -- Higher operating costs
   This reduces margins for every petrochemical company, not just ours.
2. Large capital projects (shared responsibility between our owners and CPChem's leadership)
   We're investing in several long-term, multi-billion-dollar projects.
   These projects may be essential to company growth, but they also require significant up-front spending.
   When paired with a weak market, this adds financial strain.
3. High cash distributions to Chevron and Phillips 66 (owner driven)
   Moody’s specifically noted that CPChem paid large dividends to its owners during a period of lower earnings. This was flagged as a “governance consideration.”
   Bottom line (no pun intended):
   The market created the squeeze. Our investment commitments and dividend levels added additional pressure. CPChem did not react quickly enough to manage the downturn.
   Q: Is the company in financial trouble?
   A: No.
   A negative outlook is not a sign of instability.
   It means Moody’s wants to see how we adapt to the current environment and balances investment, debt, and cashflow.
   Q: What does this mean for CPChem’s business outlook?
   A: We can expect:
   — More focus on cost discipline
   — Careful pacing of major projects
   — Ongoing monitoring of debt and liquidity
   — Continued discussions with owners about capital priorities, including dividends
   But day-to-day work continues as normal.
   Q: Should employees be worried?
   A: CPChem has completed two rounds of layoffs, and the LT has said no more layoffs are planned. That could be true for the present time, but these market conditions are expected to continue through 2027 and there are actions the owners and CPChem leadership could take or fail to take that might make things worse.
   Q: What needs to happen next?
   A: We should be focusing on:
   — Operating safely and reliably
   —Protecting cash flow
   —Managing capital projects with more financial restraint
   —Engaging with owners and credit agencies
   —Being transparent with employees as the situation evolves
   Of course, I'm no expert, as you can tell, and ChatGPT can be wrong. So please correct any misinformation or misunderstanding you see here.
   My bottom line as an employee: Less panic but still in wait and see mode. I don't have 100% confidence that LT or the owners will fix things in time to avoid a rating downgrade or future layoffs over the next 18 months. Based on their past behavior, I don't expect transparency as conditions evolve. But if you've survived 2 rounds and still have a job, there's room for hope for this once-awesome company.

@p83, Pasadena?

Will we see some plants get sold off Dec25/ 2026?

Just watched the reflection video, RT guys were also let go? twice? Didn’t realize that, thought just IT, Finance, commercial…

@OP The original post of this thread accurately said what was going to happen in 2025. Original Poster, please tell us what is in store for 2026!

@nxz CPC is not smart enough, definitely not strategic enough, and not engaged enough to play in the same league as an Enron. Like comparing peewee football to the Dallas Cowboys. That doesn't mean CPC's LT/LTE are not evil enough if given the chance. CPC is a gravy train. What people at the upper management level are all about is taking advantage of working in a lucrative industry and all the financial and lifestyle perks that come with it. We all do that, right? But I'm talking about spending every 8-hour day substantially focusing on maintaining or improving your personal financial and power position over the needs of the company and its customers and employees. These folks are 10 out of 10 in this only for themselves and make decisions on that basis. The lavish golf tourney and HQ grand opening celebration were for THEM, their perks, not yours. The layoffs may be justified, but they are also very much about crafting a specific culture that removes obligations — like employee recruitment, development and retention and programs and departments designed to support that — and critical input from employees who question or want to give input on their business decisions. Outsourced services are staffed by people who are not engaged in CPC culture, couldn't give a rat's a** about things like iCare and DEI or public opinion and regulatory pressures on the company. This new culture is designed to support nepotism and the rise of unqualified people into positions of authority throughout the company. They have a strong shared belief system that is incompatible with a healthy workplace and a culture of excellence and service. In other words, they d-mb and selfish and they thrive on your envy and desire to join their ranks of insiders.

@nxf As someone that actually worked for Enron, I agree...CPC is not Enron, so just stop. Your pension is safe. This is just a downturn in the market and CPC is adjusting. I did get laid if in round 1. I don't agree with all their current decisions or some people leading the company, but I do understand. Su-k it up and move on.

@nxe I have asked this very question repeatedly! Why? Non-revenue producing department- so top heavy - business partners?? There is no one left to partner with! As of March ‘26 there will be even less! So ridiculous

@nwj CPC is hardly Enron

Can someone explain to me how HR, the least valuable group in the company, hasn’t had any downsizing? Do we really need this many former sorority girls who do nothing but gossip, flirt with management, and threaten our jobs? Make it make sense!

@nsv Enron did.

@np5 spoken like a true outside retirement financial planner.CPChem is nowhere near bankruptcy and pensions are safe. Think about this, would the LT make adverse pension decisions when their own pensions would be affected as well?

@n5n

Get your money before it's too late.
Do you really want to rely upon the words "Generally" or A company "MAY" choose to continue it's pensions if restructuring is successful to prove your point?

If CPChem kept your pension annuity but eliminated lump sum payouts, how would that impact your planning?

Key Factors That Determine Impact

• Type of Bankruptcy
  • Chapter 11 (Reorganization): The company may continue pension obligations if it restructures successfully.
  • Chapter 7 (Liquidation): Pension plans are more likely to be terminated, triggering PBGC involvement.

Will we be seeing a Q1 sales of Specialty Chemical and Drilling Specialties business?

Wave one was over several months too - IT, HR, some expats
Wave two is over several months - Finance, marketing, logistics, coordinators, other. If I received a call via teams, I would not be embarrassed walking out of the plant or office. If I was told in advance six months from now, that’s a long time to carry that loss, but I could look for a job with the options. Either way, not easy. I know it hurts because we have or had it so good for so long. It is lonely watching others leave. I am feeling the loss too. We have several rehires here and hope to see some people back when the market improves if I am still here. Prayers

@n1a I'm sure there will be a wave every quarter. They're gearing up to sell. Skin the company to bare bones and sell. The new buyer will clean house after that. This isn't over.

@n39 Generally, bankruptcy filing protect companies from their creditors, but that doesn't include pensions. Pension assets are held in trust outside company assets and cannot be taken by insolvent companies or their lenders.

@n39 while I agree with you regarding the “fat” please refrain from spreading incorrect rumors regarding the pension not being paid out of CPC files for bankruptcy. This is blatantly false.

I believe the pension is ~97% funded currently. If CPC files for bankruptcy which I highly doubt they ever would, the vested pension benefits are largely protected by federal law through the Employee Retirement Income Security Act (ERISA) and the Pension Benefit Guaranty Corporation (PBGC).

This is not 2001 and the protection was largely brought upon due to the Enron debacle where most employees and retirees lost all their pension. You should be thankful that your pension is safe.

With that said, I do agree, if you get laid off, pull all of it out immediately and roll it into an IRA where you can manage it yourself.