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Texaco Employment Falling On Low Oil Prices

November 16, 1998
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Texaco Employment Falling On Low Oil Prices

Low oil prices prompted Texaco to cut about 1,000 out of 8,000 upstream employee and contractor jobs worldwide as part of a reorganization designed to increase emphasis on long-term production and reserve growth and streamline costs and improve competitiveness. Cost savings are projected to be $200 million per year, and the reorganization is expected to be completed by the end of the first quarter of next year.

A similar but unrelated move at Texaco Natural Gas will affect about 100 employees. Texaco said it is reviewing its North American gas business and expects to cut about 100 jobs. The natural gas cuts will be made mainly at offices in Houston and Tulsa, as well as various locations in Louisiana. Employees are being notified this week. They will be offered severance, a spokeswoman said.

Referring to the worldwide layoffs, Senior Vice President John J. O'Connor said, "Changes in the industry have fundamentally altered the competitive landscape and Texaco must respond in order to improve its position. "By refocusing our capital and resources, the company is positioned to improve efficiencies in current operations and achieve our ambitious growth plans through a strong emphasis on strategic exploration activities, acquisitions and discovered reserve opportunities." The restructuring is designed to sharply focus Texaco's upstream activities on three key activities: finding and acquiring resources, commercial development, and production optimization.

Besides O'Connor, other Texaco vice presidents will lead the new organization, with each having worldwide responsibilities. Claire S. Farley, president exploration and new ventures, most recently served as president Texaco North America Production. In her new position, Farley will be responsible for finding and securing resources through worldwide exploration, new ventures and acquisitions. Bruce S. Appelbaum will continue to oversee Texaco's worldwide exploration activities. Robert A. Solberg, president commercial development, most recently served as president international production with responsibility for producing activities in Asia, the Pacific Rim, West Africa and Latin America. In his new position, Solberg will be responsible for the assessment of commercial viability and swift development of new assets.

Joe Fisher, Houston

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