Sunoco on Friday said it will cut about 750 positions in 2009 as part of an effort to reduce costs by more than $300 million on an annualized basis by years end.
The Philadelphia-based company said the job cuts are part of the first phase of its Business Improvement Initiative. The first phase of the review included all business operations and support functions at the Philadelphia and Marcus Hook refineries.
The 750 positions is from our salaried workforce and represents about 20 percent of the salaried workforce of about 3,700 employees, Sunoco spokesman Thomas Golembeski told Lube Report. The overwhelming bulk of the impact is going to be in the Greater Philadelphia area.
Including non-salaried workers, Sunoco had 13,700 employees at the end of 2008, according to its annual report issued Feb. 25. The company said it plans to offer hourly employees in certain identified areas the opportunity to resign and receive severance.
While the company has enjoyed several years of strong financial performance, we are now facing a different – and more difficult – economic reality, said Sunoco Chairman and CEO Lynn Elsenhans. Like many other companies across a variety of industries, Sunoco is taking steps to remain competitive.
In addition to the job cuts, Sunoco expects to also save money in energy costs, and on the use of materials, equipment and contractor services.
Tulsa Refinery Update
Last December, Elsenhans said during a meeting with analysts that Sunoco may convert its Tulsa, Okla., refinery into a terminal in late 2009 if it cant find a buyer for it. The refinery has a base oil plant with 9,500 barrels per day API Group I capacity.
We continue to pursue a sale of the Tulsa refinery, as our CEO indicated back in December, Golembeski noted on Monday. There has been no change in those plans.