Pennzoil Co. has reached its goal of cutting $75 million/year from general and administrative (G&A) costs. The Houston company's G&A expenses are to be lowered to $175 million/year by the end of 1996, a 30% reduction from the 1994 level. Pennzoil also has reorganized its corporate functions and transferred 40% of the corporate staff to business units for greater efficiencies. The company reduced its workforce by 496 employees and 178 contractors as a result of the G&A reduction program.
Pennzoil Co. has reached its goal of cutting $75 million/year from general and administrative (G&A) costs.
The Houston company's G&A expenses are to be lowered to $175 million/year by the end of 1996, a 30% reduction from the 1994 level.
Pennzoil also has reorganized its corporate functions and transferred 40% of the corporate staff to business units for greater efficiencies.
The company reduced its workforce by 496 employees and 178 contractors as a result of the G&A reduction program. Salaries and benefits for those employees and contractors account for nearly 60% of the G&A cost savings.
Remaining savings stem from efficiencies achieved through elimination of nonessential or redundant functions.
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