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Tosco Corp., preparing for its acquisition by Bartlesville, Okla.-based Phillips Petroleum Corp., said it would eliminate more than 200 positions from its subsidiary, Tosco Marketing Co.
The majority of the positions eliminated, approximately 90 percent, will come from Tosco Marketing's Tempe office. The employment reductions, which have been ongoing over the past three months, will be completed by the end of June.
To cover the separation costs the convenience retailer, which operates more than 4,200 Circle K and 76 locations, said it would take a one-time charge to earnings of approximately $10.5 million during the second quarter. The cost reduction program is expected to save the company approximately $20 million annually.
"It is always difficult to reduce employment levels, but the very competitive environment in retail marketing mandates a very cost efficient operation," said Thomas O'Malley, Tosco's chairman and CEO. "We expect to benefit promptly from these cost reductions and thus enhance the company's future profitability."