April 1, 1999 |
BP Amoco's aim in acquiring Atlantic Richfield Co. is to survive in the fast-consolidating petroleum industry by growing bigger. It plans to boost its profit by cutting costs, firing Arco personnel and eliminating duplicate operations to do so. The British company, formerly known as British Petroleum, and its group chief executive, Sir John Browne, are unusually swift and direct in cutting costs out of the hides of acquired companies.
April 1, 1999 |
BP Amoco has agreed to buy Atlantic Richfield Co. in a stock swap worth about $27 billion that will fold the Los Angeles oil company into a new global energy giant capable of exploring all corners of the planet--but thousands of Arco employees probably will not be a part of it. The two companies are expected to officially unveil the deal this morning in London. If the transaction goes through, Arco, the seventh-largest U.S.
January 16, 1999 |
Atlantic Richfield Co. said it will eliminate an additional 300 jobs and take charges of $890 million in the fourth quarter, continuing a trend of cutbacks and consolidation in an oil industry battered by low prices for crude and weak demand. The layoffs will now total about 7% of Los Angeles-based Arco's total worldwide work force of 18,000. "The bulk of the cuts are in corporate offices and technical areas, such as engineers and scientists," said spokeswoman Linda Dozier.
January 7, 1999 |
Phillips Petroleum Co., the seventh-largest U.S. oil company, said it will cut 1,400 jobs, or 8% of its work force, and slash spending by about a third this year because of a continued oil-price slump. Phillips also will take $339 million in charges that will result in a loss for the fourth quarter. Excluding charges, the company said, it would break even or post a small loss. Analysts had expected Phillips to earn 12 cents a share.
December 30, 1998 |
Conoco Inc. said it will eliminate 975 jobs, or 6% of its work force, next year as part of an effort to slash expenses by $500 million, joining other oil-related companies making cuts because of plunging oil prices. The cost-cutting program, which will reduce Conoco's spending by 22%, will result in a $50-million charge against fourth-quarter earnings. A spokesman for Conoco, which is 70% owned by DuPont Co.
November 13, 1998 |
The oil industry will endure at least another year of anemic prices leading to layoffs, such as those announced Thursday by Texaco Inc., and reductions in capital spending, executives said at an industry gathering in San Francisco. "This is a critical period for the industry," Peter Bijur, Texaco's chief executive, told fellow oil executives at this week's annual meeting of the American Petroleum Institute, the industry's trade group.