Amoco Corp. announced today that its subsidiary, Amoco Oil Co., will close eight regional and district sales offices as part of a reorganization of marketing operations.
The move, which eliminates regional offices altogether and reduces the number of district offices to 10, is the latest in a series of measures designed to cut costs and improve efficiency.
Last year, Amoco closed 2,300 of its nearly 18,000 domestic gasoline stations as part of a continuing effort to consolidate gasoline marketing in the most economically attractive locations.
Amoco spokesman Carl Meyerdirk emphasized, however, that the current reorganization does not reflect any reduction of Amoco's commitment to refining and marketing.
The office closings, scheduled to take effect by Jan. 1, will affect about 120 people, or roughly 5 percent of Amoco Oil's 2,500-member marketing department.
An Amoco spokesman said it was unclear how many employes would be laid off and how many would be eligible for transfers or retirement.
The offices to be closed include three regional offices in Oak Brook, Ill., Kansas City and Baltimore, as well as five district offices in suburban Chicago, Denver, Indianapolis, Milwaukee and Omaha.
The suburban Chicago district offices, which are in Elmhurst and Des Plaines, are expected to be consolidated into one office in Oak Brook.
As part of the changes, Amoco's 33-state marketing system will be segmented into east and west zones, with district offices remaining in Atlanta, Philadelphia, Baltimore, Chicago, Detroit, Kansas City, St. Louis, Minneapolis, Fort Lauderdale, Fla, and New Haven, Conn.
Sam Van Sickle, Amoco's marketing vice president, said the district offices will be expanded to include responsibility for distribution, maintenance, merchandising, training and additional analytical functions.
At one time, Amoco had division offices in virtually every major city in its market territory, including cities of such relatively modest size as Green Bay, Wis., and South Bend, Ind.