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UNOCAL ANNOUNCES VOLUNTARY RETIREMENT, SEVERANCE PROGRAMS AS PART OF COST REDUCTION EFFORT

 UNOCAL ANNOUNCES VOLUNTARY RETIREMENT, SEVERANCE PROGRAMS
 AS PART OF COST REDUCTION EFFORT
 LOS ANGELES, May 18 /PRNewswire/ -- Unocal Corp. (NYSE: UCL) today announced enhanced voluntary retirement and severance programs to reduce employment levels as part of a major, companywide cost reduction effort.
 The company expects to eliminate 800 to 1,200 positions and implement other expense cuts by the end of 1992, which would ultimately improve after-tax cash flow by at least $200 million a year. The employee reductions include at least 400 personnel in Unocal's upstream energy resources group.
 Richard J. Stegemeier, Unocal chairman, president and chief executive officer, said he hopes the programs will result in significant voluntary reductions in employment.
 "Unocal must implement cost-cutting measures to compete successfully in the 1990s," Stegemeier said. "Unfortunately, these measures include the elimination of a significant number of jobs across the company."
 Stegemeier added that the company expects involuntary layoffs to follow once the voluntary programs are concluded. The extent of these involuntary reductions will depend upon the results of the voluntary programs.
 The company expects to take a one-time after-tax charge, which is presently estimated to be $35 million, in the third quarter this year as a result of the employee reductions. The charge will depend upon the actual positions eliminated to meet the cost-cutting objectives.
 The Voluntary Retirement Incentive Program enhances the existing Unocal retirement plan and will be offered to eligible employees who are at least age 55 with 10 or more years of service on Aug. 31, 1992.
 The benefit is a special, one-time enhancement to the Unocal retirement plan. The lump-sum benefit will be 4-1/2 percent of an employee's final average annual pay times years of service, up to a maximum of 1-1/2 times final average annual pay. This benefit can also be taken as an annuity.
 The Voluntary Severance Pay (VSP) is available to employees who have at least one year of service, but are not eligible to retire under the company's retirement plan.
 The VSP benefit will be 2-1/2 weeks of base pay for each completed year of continuous service. The minimum VSP benefit is 10 weeks; the maximum is 65 weeks.
 Employees will make a one-time election for the programs between July 1, 1992, and Aug. 14, 1992. Most employees electing to participate will leave the company on Aug. 31.
 The company has begun notifying eligible Unocal employees about the details of the programs.
 In addition to the expense and personnel cuts, Unocal plans to generate at least $700 million in after-tax proceeds over the next two years by selling or restructuring non-strategic assets. Approximately $350 million is expected to come from the sale or joint venture of upstream energy exploration and production operations.
 Since 1988, Unocal has realized more than $1.5 billion from the sale of non-strategic assets. So far in 1992, the company has sold its emulsion polymers business for $175 million and its chemicals distribution business for $88 million, excluding post-closing adjustments. Unocal expects to complete the sale of its interest in 24 product distribution terminals in the southeastern United States to Louis Dreyfus Energy Corp. in June, and continues to negotiate for the sale of its nationwide Auto/TruckStop system with WSGP Partners.
 -0- 5/18/92
 /CONTACT: Barry Lane of Unocal, 213-977-7601/
 (UCL) CO: Unocal Corp. ST: California IN: OIL SU:


KJ -- LA023 -- 1381 05/18/92 13:37 EDT
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Publication:PR Newswire
Date:May 18, 1992
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