US Sunoco to cut 750 jobs, 20% of workforce

13 March 2009 13:05  [Source: ICIS news]

TORONTO (ICIS news)--US refiner and petrochemicals producer Sunoco plans to cut 750 jobs this year, equivalent to about 20% of its workforce, as it tries to cope in the difficult economic environment, it said on Friday.

"While the company has enjoyed several years of strong financial performance, we are now facing a different - and more difficult - economic reality,” CEO Lynn Elsenhans said.

“Like many other companies across a variety of industries, Sunoco is taking steps to remain competitive," she said.

Sunoco, which described the job cuts as part of a first phase of a “business improvement initiative,” said it would make pre-tax accruals of $60m-70m (€47m-55m) in the first quarter to provide for employee severance and related costs.

In addition to the job cuts, Sunoco expected to achieve significant savings in energy and material costs, contractor services, and other areas, it said. 

Overall Sunoco was aiming to reduce costs by more than $300m on an annualised basis by year-end 2009, it said.

($1 = €0.78)

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