Sadly it's seldom about real G&A savings, that's not going to make the difference in a company's survivability. It's sacrificing staff to show head office, the owners or the Board you're taking action. The human cost doesn't matter and it costs companies in the long run as they lose the talent they will need later when prices rebound and they ramp back up. It's all so wrong.
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Thank you 146150. I keep thinking I'm losing my mind. The sense of entitlement on this board is ridiculous. Nobody owes you a job. When you lose your job and have limited funds coming in, I hope you keep spending at the same rate you were while fully employed. After all, the people who have jobs because of where you spend your money deserve to live at the level they are accustomed to. Jeez, did all of you always get a "participation" trophy?!
You all are out of touch. Does losing $179 million in one quarter mean anything to you? If your family income was reduced by 75 to 100%, would you cancel your cable, stop eating out, and reduce every non-essential expense you have? Of course you would. This has nothing to do with executive bonuses, and everything to do with company survivability. The sad fact of the matter is commodity prices will not recover until production drops significantly. Normal production declines will not be fast enough. Companies have to keep producing as much as they can in order to maintain cash flow, even though they are losing money on every barrel they produce. This is unsustainable. The banks are ultimately going to stop issuing lines of credit, and companies are going to go bankrupt. These are the sad facts. The company needs to do this in order to have a change of survival. Those companies not being so proactive will end up having their parts sold off to XOM and other companies that have strong balance sheets. When this happens, the buyer will make dramatic cuts anyway.
145728 said it right - trea the company like an ATM until they stop treating you like a number
That's capitalism and corporate America for you. Never be stupid enough to feel loyal to a company that sees you as a number no matter what. Have they already started notifying people in Canada?
--Houston
This is all about executive bonuses, freeing up the cash flow so they can finish the year stronger and reap rewards