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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (190462)	3/13/2009 10:02:31 AM
From: ChanceIs	Respond to of 306849

Sunoco to Cut 20% of Salaried Workers Amid Restructuring By KEVIN KINGSBURY Sunoco Inc. said it would cut about 750 salaried jobs this year, or 20% of that work force, as part of the first phase of the oil refiner and retailer's restructuring. The company also plans to offer some hourly employees buyouts. "While the company has enjoyed several years of strong financial performance, we are now facing a different -- and more difficult -- economic reality," said new Chairman and Chief Executive Lynn Elsenhans. "Like many other companies across a variety of industries, Sunoco is taking steps to remain competitive." Shares fell 2.7% premarket to $28.33. The stock is down one-third this year. The company is pushing to cut annual costs by more than $300 million by year's end. That will be achieved through energy costs and cutbacks on materials and contractors as well as the job cuts. A first-quarter charge of up to $70 million is expected. Sunoco, which has some 13,500 employees, had been hurt like many refiners last year by roller-coaster crude prices, first by struggling to pass on higher costs to consumers at the pump. Margins, though, remained low as oil tumbled as gasoline usage fell. Margins have improved so far this year, as witnessed by the rise in pump prices despite crude remaining relatively stable. Mr. Elsenhans was hired in August and has taken steps including putting Sunoco's chemicals business on the block. Two months after her arrival, a management shakeup took place that included the retirement of long time chief financial officer Thomas Hofmann.