BP's new chief warns of 'dreadful' third quarter

[Roland99]

Source: MarketWatch

LONDON (MarketWatch) -- Tony Hayward, BP's new chief executive, has warned staff that the oil giant's third-quarter revenue will be "dreadful" and raised the specter of massive layoffs by pledging to simplify the corporate structure, a according to a published report.

Hayward issued his grim assessment during a "town-hall" staff meeting in Houston, saying the group's financial performance was its worst in more than 10 years, the Financial Times newspaper reported.

...

"What we are seeing here is a classic case of expectation management by a new management team while they still have a grace period with investors -- i.e., they can point the finger at Browne for all the problems," said Merrill Lynch analyst Mark Iannotti in a note to clients.

Hayward said he plans to consolidate BP's corporate into larger operating groups and reduce the number of layers of management, according to the report.

Read more: http://www.marketwatch.com/news/story/bp-chief-executive-reportedly-warns/story.aspx?guid=%7B4612EAC8%2DEF49%2D4130%2DA9BD%2DF26E9C60BEA8%7D&dist=hplatest

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I guess the BILLIONS in profits from the last couple of years can't go to, oh, keeping peoples' jobs!!!

[driver8]

1. I'm sure that the billions in profits went for executive bonuses and perks.

Fuck the workers -- as long as the execs get theirs.

[tanyev]

2. So dreadful they'll have to cut salaries or benefits or employees, I'm sure.

Except for the executives.

[pattmarty]

3. So, what, they're only going to have 30 Gazillion dollars in profits?

[Bluestar]

4. Oh, puh-leeze

I smell a very large rodent. No matter the problems within the company, with the obscene profits from increased gasoline prices no oil company can be in trouble. This must be a pitch to "open up" more oil drilling sites or something. I am going to follow this closely because I believe this is a big lie. I can't believe they think the public is this stupid.

[frazzled]

5. So dreadful they'll just have to dump that sludge and mercury ...

into Lake Michigan afterall, as Indiana Governor Mitch Daniels and his buds at the EPA have given them license to do. The only reason they've held off so far after announcing they'll do it has been public outcry.

Maybe they're doing dreadfully because people like us have been boycotting BP? We absolutely refuse to buy our gas there.

[Javaman]

6. Currently reading "legacy of ashes: the history of the CIA"...

BP was the direct result of the overthrow of the democratically elected PM of Iran. As soon as the Shah was installed the Brits set up their own little oil corporation. Namely BP. Nice huh?

Beyond petroleum my ass.