UNOCAL TO RESTRUCTURE ACTIVITIES OF CORPORATE HEADQUARTERS DEPARTMENTS
UNOCAL TO RESTRUCTURE ACTIVITIES
OF CORPORATE HEADQUARTERS DEPARTMENTS
LOS ANGELES, Nov. 19 /PRNewswire/ -- Unocal Corporation (NYSE: UCL) today said it was restructuring the activities of its corporate headquarters departments to improve efficiency and reduce costs.
The company said the restructuring will yield annual cost savings in excess of $20 million.
The company pointed out that the cost reductions will come mostly from elimination of certain non-personnel expenses. The company is eliminating about 85 positions, including 20 that are currently vacant.
The announcement comes after a three-month cost-benefit analysis of the activities of Unocal's staff departments at the company's Los Angeles headquarters.
"We undertook this effort to achieve a more efficient corporate structure that more closely matches the changed needs of Unocal's operating divisions," said Richard J. Stegemeier, Unocal chairman, president and chief executive officer.
"This was not a typical cost cutting effort," Stegemeier said. "We focused on the work itself, measuring it on a cost-benefit basis. The end result will be permanent cost savings, through the elimination of low-value activities and expenditures, improvement in meeting customer requirements and stronger competitive position for the company.
"Unfortunately, in the process some positions are no longer required, and we have had to lay off some employees."
Employees to be laid off today will continue on Unocal's payroll until January 15, 1992, and then receive two weeks pay per year of service (up to 52 weeks of pay). In addition, laid off employees will be offered outplacement assistance.
Stegemeier pointed out the sale of major company assets in recent years had changed Unocal's business focus.
"As the company has sold various underperforming assets and increased its emphasis on its basic energy business," he said, "the support required from corporate departments has changed. This restructuring brings the corporate departments in line with the needs of the operating divisions."
Unocal conducted a similar analysis of its Science and Technology Division, headquartered in Brea, California, earlier this year. As a result, the division refocused its research activities in support of operating objectives, reducing costs by about $20 million per year.
Over the past several years, Unocal has sold or closed a number of operations as the company refocused on core business assets. These steps included the sale of its Norwegian oil and gas and Canadian coal mine operations, the shut down of its Beaumont, Texas, refinery, and the suspension of operations at the Parachute Creek, Colorado, shale oil project.
In addition, Unocal formed a 50-50 joint venture with Venezuela for its Midwest U.S. refining and marketing operations.
This month, the company announced it had reached agreements to sell its chemicals distribution business and emulsion polymers business, and was entering into negotiations with a prospective buyer for Unocal's southeastern U.S. petroleum products marketing and distribution operations.
/CONTACT: Barry Lane of Unocal, 213-977-7601/
(UCL) CO: Unocal ST: California IN: OIL SU: CH -- LA019 -- 4950 11/19/91 12:24 EST