Quote:
Originally Posted by Samonadreau
Lots of companies had/have fat to trim. Usually it farthest from the wellhead. This time around it will be everywhere but still mostly farthest from the wellhead.
Also, I think this will fundamentally change how Businesses in this sector are run that will lead to savings greater than the severance packages that are handed out.
What is going rate for severance, 3wks per yr worked? So if the average worker in a layoff has 7 years that is 21 weeks or just shy of 5 months. Add the overhead of the worker at another 50+% and after 3.5 months you are net positive in theory. Just an example obviously.
Also other savings considerations as well.
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Also lets be honest here, a lot of O&G companies are over staffed. I think a lot of companies are figuring out they can run leaner and farm out some work to 3rd parties if need be for sometimes cheaper than in house.