Kerr-McGee announces savings plan by reducing US workforce

Kerr-McGee announced a plan to generate approximately $ 45 mm in savings. The company will reduce its US non-bargaining workforce by about 7 % to 9 % or 200 to 250 employees, which is expected to save approximately $ 30 mm annually in salaries and benefits.
In addition, the company has put into place a plan to mitigate $ 15 mm of future annual medical and pension expenses. The company expects to take a charge in the fourth quarter of 2003 of approximately $ 40 mm after-tax related to this plan.

"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 workforce through early retirement and involuntary severance and separation programs, which will be completed by the end of 2003.