BP restructuring to involve area offices

BP PLC employees in Naperville and Warrenville learned Thursday their company-wide restructuring could transfer many of their jobs to Houston and Chicago or eliminate them over the next two years.

About 7,000 North American workers -- including about 3,300 in Naperville, Warrenville and Chicago -- received a memo from BP North America Chief Bob Malone and other top executives regarding the merger of departments, transfers and possible layoffs.

The memo said changes have already started and will continue through 2009 affecting corporate positions and managers, who would be transferred to Houston, BP's North American headquarters. Other transferring positions involve human resources, accounting and finance.

Affected employees who do not transfer will be offered severance packages.

In addition, positions in supply, logistics and trading will be moved to downtown Chicago "to be closer to the front lines" with the financial district, BP spokeswoman Scott Dean said.

"It's still too soon to tell exactly how many people will be transferred or laid off," Dean said. "But Chicago remains the second largest center in North American and it will remain so in the next couple of years."

On Oct. 11, BP Chief Executive Officer Tony Hayward said the British oil giant would restructure worldwide to streamline operations and save money. He said BP soon would have only two main divisions: exploration and production, and refining and marketing. The current third segment, gas, power and renewables, would be incorporated into the other two.

A separate division, alternative energy, will handle BP's low carbon business and future growth options outside oil and gas.

BP's research and development center opened along I-88, the well-known tech corridor, in the 1970s and likely will remain there after this transition, Dean said.

"We're still going to need some office space here for our refining and marketing activities," said Dean.

Naperville Mayor George Pradel said BP had informed him of the impending changes.

"I asked them if we're losing a lot of employees here and they said that they didn't think so," Pradel said. "So I don't feel this is any case for alarm right now."