IT, Finance and Commercial are expected to layoff ~300 people in 2 waves starting with IT in early Q3 2025. A majority of operational support for IT will be moved to outsourced providers. Major IT restructuring will be done using the “spans and layers” concept suggested by BCG to reduce management layers.
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@vk as someone with a few of the service awards on their desk, i agree. Something changed after covid/wfh. Can't say if for the better or worse. Maybe we need a little housecleaning but I would rather see it through the lagging rating instead of layoffs.
@tw absolutely it’s a different company than it was 10 years ago and not for the better - it’s a shame
@va true about paying the piper. PBD was a joke. We should have doubled down on bets in class reliability and up time and it would have paid for itself many times over.
@tw if you follow Chevron and Phillps 66 layoff boards you will see we are following in our owners footsteps albeit we are lagging. The building is unfortunate but was decided upon when we were distributing cash to the owners. We grew a bit too fast in people and assets over the last 4 years and now the piper has to be paid...
I feel like as a company we are losing our way. This feels like a very different company than it did 5 or especially 10 years ago. Too much of our upper management is trying to leave a mark and change CPChem. Many of whom are so new, that they never even knew the CPChem culture before they started changing it. That is what drove the company to the current position we are in. The CPChem we had was pretty damn good. It seems like good talent keeps walking out the door and I don't see that ending any time soon. I use to say the CPChem culture was our biggest selling point. I am not sure I can say that today.
I wonder how many employees are going to want to go celebrate a new building built for someone else?
Save the date reminder!
Please join our leaders for a celebration of 25 years of
Performance by Design and Caring by Choice.
New HQ Ribbon Cutting Ceremony
@ps She's already the CEO...or will be very soon. SUPRISE!
Does anyone remember when CPChem made plastic, and did so very very well? Now they just make bad decisions. RIP.
This is disappointing news as cpchem was in the top of its peer group last year and although it is not hitting its (questionable) financial targets in the short term, it is still a very profitable company.
You would think being a privately held company we would be more immune from slowdowns in the short term as we don’t have stock price/activist investor buyout risk.
@jw please give more details on this. I find it troubling that in times like these a company went out and spent massive amounts of money on a building they hardly use. It leaves the employees to wonder if there is any actual work going on or if they are just lounging about sipping on fine coffee, tea, and crumpets? There is a disturbing trend of no accountability for those who make these decisions, which leads to layoffs that are happening now. Remember, you are just a number. You aren't special.
DEI at its finest
@h7 She doesn't know how it works or how to correct it. Outspent her budget every year on business transformation. Big failure. Now she is responsible for making recommendations to the leadership according to the CEO. Outsourcing is a proven failure but that is her solution. Probably make her CEO.
@jn and now we’re paying them to lay our people off when we have an oversized HR Department- how logical
@my
Maybe we can sign our layoff paperwork on the $90k conference room table.
Funny how the company and leadership made decisions to build a new HQ, create a distinct C-Suite, build 2 massive projects with PE margins tanking, and then decide we need layoffs. Those that are responsible for making the poor decisions will likely be promoted or get raises while hundreds will lose their livelihood. The world is a cruel place. If only we could have internal talent that sees the errors rather than paying millions to consultants to run the business. Never will understand that strategy.
Maybe they can take away everyone’s trash can to save money! Oh wait…. Already tried that! Maybe they can rent out the pickle ball court!!
Soooo…. They buy a new over the top building so people can play pickle ball and then announce layoffs! Good job
@jw the business manager stole from the company ? What happened?
If only CPChem could recover the couple hundred thousand Drilling’s business manager and sales manager stole, they would only have to layoff 299 people next quarter
If anyone remaining in IT hears the name "CapGemini," RUN
Cost cutting to the tune of 300+ million. Not sure how that's going to happen. Good thing we have a massive new shiny HQ building. The pickle ball courts will save the day. It was good while it lasted.
So when are they shutting down the Drilling Specialties group? They’ve been bleeding money for years. Can’t imagine keeping the doors open at the Conroe plant is a strategy that helps the balance sheet…
BCG 🤘
This is what happens when an incompetent non IT CIO manages an IT organization, she has no clue how IT works so she is pushing everything to offshore.
Additional information. The Business Transformation VP/CIO informed the group yesterday afternoon of pending reorganization and associated layoffs in Q3. It was said that the primary cause is lack of CPChem financial health due to downturns in business, the large investments in Golden Triangle Polimers and the Qatar based
Ras Laffan Industrial City projects, have all left CPChem with no financial cushion. The analogy used is CPChem is living off of a credit card. Also, the poor choices in organization transformational investments over the last 3 years have been perceived as a failure. Chevron and Phillips board members are micromanaging CPChem leadership to hasten the layoffs, demanding a doubling down in offshoring, outsourcing, and reasoning a decicion to save costs in 2025 - 2027, acknowledging the higher cost to rebuild later.