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BP Amoco cutting 1,600 jobs
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January 26, 1999: 12:41 p.m. ET
Global energy slump, low oil prices force reorganization on heels of megamerger
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NEW YORK (CNNfn) - BP Amoco said Tuesday it plans to make its Houston WestLake complex the new headquarters for all U.S. continental exploration and production activities, leaving roughly 1,600 employees out of work in the process.
The announcement comes one month after oil-industry titans British Petroleum and Amoco completed a merger to become the third largest oil company in the world in a deal valued at $49 billion, with daily production of about 3 million barrels per day.
The company said the reorganization, combined with the impact of tumbling oil prices worldwide, made the decision to eliminate jobs inevitable.
Scott Urban, group vice president for BP Amoco, termed the need for job cuts "deeply regrettable," but insisted the decision reflects the company's desire to compete globally and increase profit margins despite the difficult environment, even if oil and gas prices remain at their current low levels.
"We knew the merger would mean job losses due to eliminating duplication, but this has been exacerbated by the external climate. We will now be doing everything we can to help those who are leaving to transition to a new future," Urban said.
BP Amoco (BPA)said other major operations in Texas, including a refinery in Texas City, chemical plants in Chocolate Bayou, Ceday Bayou, Pasadena and Green Lake won't be significantly affected by the job cuts.
Shares of BP Amoco fell 1-11/16 to 84-5/16 in morning trading on the New York Stock Exchange. 
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BP Amoco
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