ConocoPhillips
The Canadian arm of ConocoPhillips is one of Canada's largest oil and gas exploration and production companies.ConocoPhillips cut 1 000 jobs early in 2015 and will be eliminating around 1 810 more positions by the end of 2015 due to company losses in the millions,the result of the low oil prices.The CEO stated that the company is eliminating 10 percent of its workforce this year.ConocoPhillips plans to eliminate more than 400 jobs and 100 contractors in Canada.The CEO further stated that the company needs to cut jobs to ensure that the company becomes more competitive.
ConocoPhillips is preparing for a period of lower and more volatile oil prices and has cut back its spending forecasts.The company is also paring back its deep water exploration and Alberta oil sands projects.ConocoPhillips shares have fallen 41 percent over the last year,reaching their lowest price in five years.

Which of the following is a medium-term cost adjustment that ConocoPhillips could consider to reduce costs?
A) exit incentives
B) hiring freeze
C) mandatory vacation
D) reducing overtime

Question

​ConocoPhillips
The Canadian arm of ConocoPhillips is one of Canada's largest oil and gas exploration and production companies.ConocoPhillips cut 1 000 jobs early in 2015 and will be eliminating around 1 810 more positions by the end of 2015 due to company losses in the millions,the result of the low oil prices.The CEO stated that the company is eliminating 10 percent of its workforce this year.ConocoPhillips plans to eliminate more than 400 jobs and 100 contractors in Canada.The CEO further stated that the company needs to cut jobs to ensure that the company becomes more competitive.
ConocoPhillips is preparing for a period of lower and more volatile oil prices and has cut back its spending forecasts.The company is also paring back its deep water exploration and Alberta oil sands projects.ConocoPhillips shares have fallen 41 percent over the last year,reaching their lowest price in five years.
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Which of the following is a medium-term cost adjustment that ConocoPhillips could consider to reduce costs?
A) exit incentives
B) hiring freeze
C) mandatory vacation
D) reducing overtime

Quizplus · Accepted Answer

Exit incentives, such as golden handshakes or severance packages, would provide a medium-term cost adjustment because it would incentivize employees to voluntarily leave the company instead of being laid off. This could potentially reduce the need for more drastic cost-cutting measures, such as reducing overtime or implementing a hiring freeze.

​ConocoPhillips The Canadian Arm of ConocoPhillips Is One of Canada's Largest

ConocoPhillips The Canadian Arm of ConocoPhillips Is One of Canada's Largest