Someone mentioned 50% reduction to people in the USA over the next 5 years. Hear that?
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Exxon here. If they are like Exxon executives they won’t admit it but I just look at how it has played out at Exxon. The Houston campus is a ghost town with more than half the campus buildings empty. Even the buildings in use are filled with 1/4 to 1/3 Indian expats. Same in Midland. Americans training their replacements. Structural savings is code for they will replace you
HR, Finance, Procurement and IT are looking at 20-30-% reduction of US based to move towards Manila, Argentina. Aggressively do this in 2025. Hopefully these guys will at least get this notification after their CIP and LTIP.
But they will keep PsG 25+ in US.
That wouldn't surprise me when you consider how many people actually work efficiently and work their designated hours during WFH, etc., with the hybrid or whatever they claim their team allows. What we do could easily be done with fewer people legitimately working full time. I mean, we're getting paid as if we are all full time, so there's that.
Don’t worry, Exxon is also cutting headcount over the next 5 years for high cost countries. Some organizations are definitely at the 50% expected range.
Chevron 2023 revenue $200B or $4.3 million/employee.
Exxon 2023 revenue $340B or $5.5 milllion/employee.
To catch Esso we would need to trim 25% down to about 35,000 employees. A stretch goal might be 30% but not 50%.
@wfa,
Exxon is currently at 62,000 and still shrinking. Half of the campus is empty.
I think the 50% target could be true
They literally said it took us "over a year" to make the India decision despite every one of our competitors already doing it. Lol at thinking we'll see a 50% reduction in less than 50 years.
I did hear it's more than people expect
As long as MW is in charge cutting G&A is a first choice so yes, given the workforce in Houston is about 7,000, having 3,500 cut over 5 years [700 per year including retirement, attrition] is a perfect fit for him.
Well, if you look at Exxon, they went from 73,500 global in 2015 before creating their India tech center to 72,000 global now. They now have 2000 employees in their India tech center. So US may have lost 3500 so far. There are still 10,000 employees in Houston Exxon. So, a rough guess is a 25% HOU reduction there spread out over 10 years