[AT] OT NG and diesel now layoffs

Wed Dec 4 03:54:24 PST 2019

There could be another twist to the layoffs. When large corporation announce layoffs the stock price usually goes up. Raytheon and United Technologies are merging in the 1st quarter of 2020. Both stock prices took a hit. UTC announced a "voluntary separation" where the employees got a nice severance package. There were so many people in Montreal that wanted out they had to have a lottery! Anyway the stock prices are up above where they were when the merger was announced this summer. In another job, the CEO announced that he would get the stock price above $100. This was in 2009, really bad times. It was close but no cigar until the company laid off 2000 people. Magically the stock price went to $110 and the CEO got a $10 million dollar bonus. 

I had a phone interview with Halliburton a few years back. The position was a Lean Six Sigma engineer to be used to sped up the assembly process for specialized oil field trucks. Everything was straight forward until I asked what was going to happen to the position once new processes were in place. There was silence on the phone and things took a bad turn. I saw that coming miles away! I cut the interview short and withdrew my name. 

Jim Thomson
Rehoboth, MA

> On December 4, 2019 at 12:58 AM Dennis Johnson <moscowengnr at outlook.com> wrote:
> 
>     I have seen similar things at Schlumberger. I remember one time vividly, because I was a supervisor that had to tell several employees they were no longer needed. This was in the well service engineering, manufacturing, and laboratory in Tulsa, Oklahoma. The combined groups had just over a 1000 employees in Tulsa. After this was done we ended up under 200 employees in Tulsa. (Tractor reference - I bid on a Farmal Cub with mower in an employee auction, and came in second place. Shop supervisor got it for $17 more than I bid.)
>     In 1993/1994 we had another issue where management decided to outsource most assembly/manufacturing, and move out of Tulsa.
>     There were a few more downsizing times. With the well service manufacturing now outsourced, the layoffs were not first hand, but someone else dealt with it. Still several jobs were lost.
> 
>     For the mathematicians out there, if you take the supply of oil and gas a a primary function, the oilfield equipment manufacturing is a 3rd or 4th derivative of this primary function. That is why the changes are so abrupt. 
>     I guess that engine suppliers are in a similar position if you look at trucking mileage as a primary function.
> 
>     Dennis
> 
>     Sent from my iPad
> 
> 
>         > > On Dec 3, 2019, at 6:49 PM, Cecil Bearden <crbearden at copper.net> wrote:
> > 
> > 
> >     > 
>         > > 
> >         I have seen Halliburton do this 3 times since 1975.  I have some engineer friends who left Halliburton and hung out a shingle for that reason. 
> > 
> >         OK, I don't want to get into politics, but I don't think that any of us want to get caught with our financial pants down, so to speak.   Things are going to slow down and really get tight..  I subscribe to the Bob Livingston Letter.  I have for several years.  He predicts things pretty accurately.  I just do not feel that I can take a chance on the stock market at my age.  However he has a lot of useful information.  The letter I received today stated the reasons behind these layoffs and what might be expected in the next year or two.  It doesn't look good.  I am thankful that I followed my Dad's advice and only bought equipment and livestock I could pay for at the time.  With a full tank of fuel and if my health does not deteriorate  any more I can weather the storm.  I would recommend you guys subscribe to the Bob Livingston Letter, it is free.   I have no connection to it and I will stop recommending anything not tractor related...
> >         However, after digesting today's letter, it may give a clue as to why our old iron is not  as valuable as we think it should be.   There is just not as much money floating around out there as there used to be.  Here in OK the horse business follows the Oil Patch.  When there is a lot of drilling and leasing, horses and anything connected with them is a hot commodity.  When the oil Patch slows down, horses go hungry and horse trailers are being sold by the banks.   It seems the only business that does good in a recession is the liquor business.  When I worked in the tractor shop 50 years ago, our best customer owned 2 bars!!!!!
> >         Cecil
> > 
> >         On 12/3/2019 4:36 PM, bradloomis at charter.net mailto:bradloomis at charter.net wrote:
> > 
> >             > > > 
> > >             Ah but today’s MFG news has several:
> > >             Halliburton Lays Off 800, Plant Closure Expected http://click.reply.ien.com/?qs=e03bb548e1a039502400064a0b082dd55a10f6a101e9efd7799e0dc22e688d2cb8ec0e1d287cef18bf8beaa8f8f8255ed6a83eecc27c9460
> > > 
> > >             Daimler to Cut 10,000+ Jobs http://click.reply.ien.com/?qs=e03bb548e1a03950e52d03a84c8da6a0cd579bda93e2654f34fab7eed5600e38a4264491315959474f8e37f0b1d14e99744a70a249e258ad
> > > 
> > >             US Manufacturing Contracts for Fourth Straight Month http://click.reply.ien.com/?qs=e03bb548e1a03950472d576721036a2609258780a240f0e8c37e502adaf2c6cff3ecf119190148f4eb1ddb7a368410003443989b3281127f
> > >             I guess thing’s aren’t all rosy in the manufacturing/industrial world.
> > > 
> > >              
> > > 
> > >             From: AT <at-bounces at lists.antique-tractor.com> mailto:at-bounces at lists.antique-tractor.com On Behalf Of James Peck
> > >             Sent: Tuesday, December 03, 2019 8:54 AM
> > >             To: Antique Tractor Email Discussion Group <at at lists.antique-tractor.com> mailto:at at lists.antique-tractor.com
> > >             Subject: Re: [AT] OT NG and diesel
> > > 
> > >              
> > > 
> > >             Those are all salaried jobs. They probably allow managers to rank the salaried employees and cut those with the lowest ranking. It does not really reduce the people on the shop floor operating the manufacturing equipment. On the other hand, they probably should not cut the people in the high turnover disciplines because they will empty out on their own.
> > > 
> > >              
> > > 
> > >             And some not so good news on the manufacturing front:
> > >             https://www.manufacturing.net/home/news/21103326/cummins-cutting-2000-jobs-in-2020
> > > 
> > >              
> > > 
> > > 
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