Dear HR,

Dear Mr. Chevron,

Thank you for your question. Chevron, the 2nd biggest oil corporation in the United States, is making efforts to cut down on spending after being financially hit during the COVID-19 pandemic. Their attempt in doing so is anticipated to result in 15% of Chevron employees losing their jobs. Other companies, such as AT&T, made the decision to reduce costs by cutting the healthcare benefits of retirees. But will Chevron take this same route that AT&T did? Let’s learn more about AT&T’s cut down on expenses.

In a memo, AT&T declared that they will be slashing benefits in 2021 and 2022; as a result, workers that retire after 2022 will take a negative impact as they will be excluded from the entire medical coverage that’s usually given to retirees. The telecommunications company will be discontinuing the way they used to supplement monthly premiums for medical and dental.

History has revealed a pattern of when a recession prevails, corporations will start to slash or pause benefits. In the 2001 recession, General Motors, Charles Schwab, Goodyear Tire & Rubber, and Ford either cut or halted their company match programs. Similarly in 2008, approximately 20% of businesses that have more than 1,000 employees decreased or froze 401(k) contributions. In conclusion, this trend has essentially recommenced in the recession caused by the COVID-19 pandemic. During this recession, big corporations like Marriott Vacations Worldwide, Amtrak, and ExxonMobil have slashed or praised their 401(k) matching programs.