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CHEVRON PROVIDES DETAILS OF PREVIOUSLY ANNOUNCED U.S. UPSTREAM RESTRUCTURING PLANS

 CHEVRON PROVIDES DETAILS OF PREVIOUSLY ANNOUNCED
 U.S. UPSTREAM RESTRUCTURING PLANS
 SAN FRANCISCO, April 30 /PRNewswire/ -- Chevron U.S.A. Production Co., the U.S. exploration and production subsidiary of Chevron Corporation, today followed up on its previously announced restructuring by detailing major changes in its operations, including staff reductions of 1,700 people due to organizational consolidations and up to 600 more from previously announced sales of non-strategic producing oil fields.
 The actions are part of an ongoing cost-cutting program, announced by Chevron Chairman Ken Derr last January, designed to strengthen the overall corporation's competitiveness, improve financial performance and reduce operating costs. Employees and the financial community have been aware for several months that studies were underway to make the U.S. upstream company more competitive and would lead to significant restructuring.
 Chevron U.S.A. Production Co. President Ray Galvin notified employees by letter today that the following changes are intended to be in place by September:
 -- Chevron U.S.A. Production Co. Headquarters -- relocating from San Francisco to Houston. The staff will focus on strategic planning, serve as a technical resource, and concentrate on technology infusion and profit center support. The headquarters staff in San Francisco numbers about 35 employees.
 -- Production -- forming a new structure of three business units from the current five. The new units will be in Houston, New Orleans and Bakersfield, Calif. The current unit in Denver will be closed, while Midland, Texas, now home to a business unit, will become the base for two smaller profit centers.
 Fourteen profit centers will be created -- five reporting to the Houston business unit, five to New Orleans and four to Bakersfield. Profit centers will manage the company's oil and gas production -- with responsibility for bottom-line financial performance.
 -- Exploration -- The two business units in Houston and New Orleans will be consolidated in Houston, leaving a small division office in New Orleans. There will be a few exploration people in Midland, Bakersfield, Houston and Lafayette, La., to develop opportunities for evaluation.
 When reorganizations and property divestments are completed, the overall CUSA Production Co. work force will be about 5,800, a 28 percent cut from the current 8,100. Some departures are expected to be voluntary, as employees elect to take advantage of a special temporary enhancement to the Chevron Retirement Plan being offered until May 15. Once responses are in and personnel decisions are made, it is anticipated that a severance program will begin, with completion expected by September.
 Major staff reductions have already been announced by other Chevron operating units. The largest single reduction is at the Port Arthur, Texas, refinery, where the work force of 1,900 will be cut by nearly 700 employees.
 Chevron U.S.A. Products Co., the corporation's U.S. refining and marketing subsidiary, will streamline the refinery to dramatically reduce operating costs and become a top competitor.
 In addition Chevron has offered the special temporary enhancement to some 35,000 employees on the U.S. dollar payroll. The closing date for employees to elect to leave under this program is May 15, at which time many business units will reassess their personnel needs and determine whether further reductions are needed.
 -0- 4/30/92
 /CONTACT: Sherri Zippay, 415-894-4581, Bonnie Chaikind, 415-894-1200, or Larry Shushan, 415-894-2978, all with Chevron Corp./
 (CHV) CO: Chevron Corp. ST: California IN: OIL SU: RCN


MM-DG -- SF003 -- 5031 04/30/92 14:26 EDT
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Publication:PR Newswire
Date:Apr 30, 1992
Words:568
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