Layoffs are difficult because of the impact they have on employees and their families, Elsenhans said, but the goal is to ensure the long-term health of the company by making it lean enough to at least break even in the worst of times for refiners.
In addition to the reduction in salaried workforce, Sunoco is also searching for ways to reduce what it spends on supplies, utilities and services. Altogether, Sunoco said, it expected to reduce costs this year by $300 million on an annualized basis.
The company said it expected to set aside $60 million to $70 million, before taxes, in the first quarter to pay for the layoffs, some of which were voluntary.
Separately, Sunoco plans to offer buyouts to hourly refinery workers, Elsenhans said. She declined to speculate on how many could leave the company by that route.
Hourly workers at Sunoco's Marcus Hook refinery who are represented by the United Steelworkers Local 10-901 yesterday approved a new three-year contract that provided 3 percent annual raises and preserved current benefit levels.
Members of USW Local 10-1 at Sunoco's Philadelphia refinery were voting today on a similar deal, union president Jim Savage said.
Savage said the layoff of 750 salaried workers was severe, given the company's profitability. He called it "unconscionable" that "they are going to throw 750 families out into this economy."
Chi Chow, director of institutional research at Tristone Capital, an energy advisory firm based in Calgary, said that 750 seemed to be a big number, and that "it's probably what they need to do to stay competitive in this environment."
Sunoco had about 13,600 employees overall, including 1,200 at Sunoco Logistics, a spin-off that is still closely tied to the company. Most of Sunoco's 3,700 salaried employees are in the Philadelphia area.
