BP Amoco Sets Reorganization, Job Cuts
Continuing to work through the monstrous merger completed a
month ago, BP Amoco centralized its power last week by choosing the
Westlake complex in Houston as its exploration and production
headquarters, then revealing a 1,400 person job cut at the complex.
Company officials said the jobs were lost due to duplication and
commodity price reasons. Overall, BP Amoco plans to lay off 1,600
workers in Texas by the end of the first quarter.
"We knew the merger would mean job losses due to eliminating
duplication, but this has been exacerbated by the external climate.
We will now be doing everything we can to help those who are
leaving to transition to a new future," said Scott Urban, a BP
Urban said the company would start notifying people immediately.
Depending on their status, employees can take early retirement or
receive a severance package with up to 71.5 weeks of salary.
The company's Clear Lake engineering and construction office
will close, sending 380 of the 500 workers to other locations,
while the others will be let go. Most of BP Amoco's other Texas
operations will remain, for the most part, untouched.
Operations now residing in New Orleans, Tulsa, and Denver will
be relocated and directed from Houston. The headquarters will
oversee eight upstream business units. Seven units will oversee
exploration and production in eight states and the Gulf of Mexico;
the other will manage the company's global power generation
"When the reorganization is complete. we believe we will have a
very competitive operation in Texas and the Houston Gulf Coast. The
region will remain one of BP Amoco's biggest population centers in
the world, and BP Amoco will remain one of the largest oil and gas
producers in the state," Urban said.
A BP Amoco spokesperson said other units of the new company will
also be making decisions regarding employment by the end of the
©Copyright 1999 Intelligence Press, Inc. All rights
reserved. The preceding news report may not be republished or
redistributed in whole or in part without prior written consent of
Intelligence Press, Inc.