ConocoPhillips could lay off about 1,300 people this year under a planned 4 percent reduction in its worldwide work force
CEO Jim Mulva cited lower commodity prices and the crippled credit market for the Houston-based oil giant's cutback plan.
"We are positioning ourselves in the business environment to live within our means in order to maintain financial strength," Mulva said in a company release. "We are doing this by reducing our cost structure, addressing our balance sheet and continuing to manage the company through prudent capital discipline."
No other details or timeline were available from the company. However, the capital-budget report indicated that ConocoPhillips expects to accrue about $100 million in after-tax severance costs in the fourth quarter.
"It's really too early to tell" about specifics, ConocoPhillips spokeswoman Becky Johnson said. "All of the business units and staff groups are evaluating their operating plans for 2009, and we'll know more as the year progresses."
ConocoPhillips employs about 33,800 people worldwide, including 3,000 in Bartlesville and 1,450 in Ponca City. The company already was evaluating about 700 non-refinery positions in Ponca City.
Bartlesville is the former headquarters of Phillips Petroleum Co. before its 2002 merger with Conoco and the company move to Houston. The company still employs a significant work force in the global operations center for logistics, human resources and Internet technology. Local spokeswoman Tracy Harlow said the local operations group will play a role in determining specifics of the reduction.
Harlow was hopeful that it would not hit Bartlesville too hard.
Author:
Ksenia Kochneva
