By OGJ editors
HOUSTON, Sept. 17 -- Kerr-McGee Corp., Oklahoma City, announced plans to generate $45 million in savings, including the reduction of its US work force by 200-250 employees.
The employee reduction is expected to save $30 million/year in salaries and benefits. In addition, the company implemented a plan to mitigate $15 million of future annual medical and pension expenses. Kerr-McGee expects to take a $40 million after-tax charge in the fourth quarter.
"Competition is intense in both of our core operating businesses," said Luke R. Corbett, Kerr-McGee chairman and CEO. "As economic pressures continue and the global economy recovers more slowly, we must look for ways to reduce our current operating costs and offset future increases in other areas."
The company expects to reduce its work force through early retirement and involuntary severance and separation programs, which will be completed by the end of 2003.