1,500 Chicago-area jobs slashed

CHICAGO (AP) — BP Amoco expects to cut 1,500 management and non-management jobs in the Chicago area in the next 18 months, eliminating almost one in four positions here.

The move stems from the merger of British Petroleum Co. and Amoco Corp. last year and from the continuing slump in world oil prices, the company said Feb. 4. Most of the cuts will be at the company’s downtown Chicago skyscraper, the former Amoco headquarters.

The London-based conglomerate said the majority of those losing jobs already know, and most will be gone by the end of April. A few decisions won’t be made until early 2000, BP Amoco spokeswoman Vicky Kastory said.

At the same time, the company promised that 200 jobs will move to Chicago over the next 18 months for a net payroll reduction of 1,300. And the company promised to make Chicago the world headquarters for its chemical operations, which will bring more jobs.

The announcement comes six months after the company suggested the merger would result in Chicago gaining jobs. Low energy prices have helped turn Chicago’s expected gain into a loss, the company said.

“We’ve been struck by a continuation of low worldwide oil prices. There will be some job reductions as a result of reduced spending (and) as a result of low energy prices,” Kastory said.

BP Amoco employs close to 6,300 people in the Chicago area: about 2,200 downtown; 1,700 at a refinery and chemical plant in Whiting, Ind.; 630 at offices in suburban Lisle and Warrenville; 830 at a Naperville research and development center; 350 at a Joliet chemical plant; and about 600 at other sites.