BP MOVES TO REDUCE COSTS - ANNOUNCES VOLUNTARY SEPARATION PROGRAM TO CUT 600 TO 700 FROM U.S. STAFF
BP MOVES TO REDUCE COSTS - ANNOUNCES VOLUNTARY SEPARATION PROGRAM TO CUT 600 TO 700 FROM U.S. STAFF CLEVELAND, June 24 /PRNewswire/ -- BP America today announced a series of actions aimed at significantly reducing the costs of operating its businesses in the United States. The cost reductions, which include 600 to 700 staff reductions, are the company's latest response to the continuing impact of the recession on the oil industry and strong competitive pressures. Earlier restructuring in 1990 reduced staffing levels by reducing bureaucracy and organizational complexity. In order to achieve the reductions, a voluntary separation program is being offered in Cleveland to BP Regional Center employees, as well as to employees of BP Oil and BP Chemicals. BP Oil will also offer voluntary separation to employees at some locations outside the Cleveland area. "We regret having to take these steps, but in the current economic climate, we must reduce our costs to stay competitive and meet the challenges of the industry," said Rodney F. Chase, Chairman and Chief Executive Officer of BP America. "Ours is an industry under pressure. The recession has reduced demand for our products; prices both at the wellhead and at the gas pump are down, and competition is fierce. "If we are to be strong and viable over the coming decade, we have to be lean and fit over the coming months and years. The voluntary separation program being offered will provide a generous level of support to our employees who elect to enroll and leave the company." At the conclusion of a 45-day enrollment period for the voluntary separation program, the Regional Center and BP Oil will decide whether it will be necessary to begin an involuntary separation program.
BP Chemicals does not anticipate such action.
Today's announcement is part of an overall program throughout BP's worldwide operations to cut costs by $750 million. In April, BP announced it was eliminating 700 of the 1,450 jobs from its Head Office at Britannic House in London. BP America is a wholly-owned U.S. subsidiary of The British Petroleum Company p.l.c. of London, England. BP's operations in the U.S. include exploration and production, refining and marketing of petroleum products and chemicals. -0- 6/24/92 /CONTACT: Tom Koch, 216-586-6511 or Ian Fowler, 216-586-4976, both of BP America; or Ginny Sinko of BP Oil, 216-586-6762/ CO: BP America ST: Ohio IN: OIL SU:
LC -- CL011 -- 3346 06/24/92 14:06 EDT
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|Date:||Jun 24, 1992|
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