Unocal to Restructure

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Unocal to Restructure

06/26/2002
EL SEGUNDO, Calif. -- Unocal Corp. is set to cut 200 jobs, or 7 percent of its U.S. work force, in a restructuring of its Gulf of Mexico operations.

Unocal, an El Segundo, Calif.-based oil and gas exploration company, said the move is projected to save $20 million annually. The jobs cuts will result in a second-quarter charge of $12 million, the company said in a statement.

The restructuring will also include the selling of properties by year-end, the company said.

"The difficult steps we took today are part of a restructuring that will have a long-term positive impact for our business unit, its employees and for Unocal overall by equipping us to succeed in a new and challenging business environment," said Ken Butler, Gulf Region vice president.

In March, Unocal warned that first-quarter profits would fall short of analysts' estimates because of declines in production in the U.S. Gulf of Mexico.

"It's unfortunate when restructuring affects people's jobs," Butler said. "We are committed to handling this situation with dignity and respect for everyone affected."