AMOCO SLATES RESTRUCTURING START JULY 1

Amoco Corp. will begin its previously disclosed massive restructuring July 1. The move will slash the size of the company's corporate staff and replace its three operating divisions with 17 business groups. It will take another 3 weeks or so thereafter to determine how many jobs will be lost. Amoco will cut corporate staff, mainly in the Chicago headquarters, to about 400 from more than 6,000. However, many of those employees will be transferred within Amoco. The 17 groups will report to

June 20, 1994

Amoco Corp. will begin its previously disclosed massive restructuring July 1.

The move will slash the size of the company's corporate staff and replace its three operating divisions with 17 business groups.

It will take another 3 weeks or so thereafter to determine how many jobs will be lost.

Amoco will cut corporate staff, mainly in the Chicago headquarters, to about 400 from more than 6,000. However, many of those employees will be transferred within Amoco.

The 17 groups will report to three vice-presidents, formerly heads of the three operating divisions.

Individual corporate staff for the three divisions will be reassigned or laid off.

In a letter to Amoco's 46,000 employees, Amoco Chairman Laurence Fuller said the restructuring is designed to boost profits and set the stage for more growth.

The restructuring program was first disclosed in March, when oil prices were about $4/bbl lower than they are today. Amoco at the time said the cost cutting measures were needed because of lower than expected oil prices and financial market indifference to Amoco's stock (OGJ, Mar. 21, Newsletter).

Amoco eliminated 8,500 jobs in 1992.