Bethlehem
Announces Cost-
Cutting / Job Reduction Initiative
Bethlehem Steel Corporation
For Immediate Release
BETHLEHEM,
Pa., February 2, 2000 � Bethlehem Steel Corporation announced today that, as
part of its business plan to increase shareholder value and improve its
competitive position in the domestic steel industry, it will reduce its salaried
workforce by 15%, or more than 500 employees corporate-wide, by January 31,
2001, versus a January 1999 baseline. Bethlehem said that serious injury
caused to Bethlehem and the domestic steel industry by the unprecedented dumping
of unfairly traded foreign steel during the last 18 months makes it imperative
that additional permanent cost reductions are achieved to withstand further
injurious actions of foreign competitors and to compete profitably in the
domestic market.
Bethlehem
said that all Corporate Departments and Business Divisions have been evaluating
their force level requirements, systems and procedures for forecasted operating
levels, and that these steps were being taken to increase productivity and
improve its cost structure and overall competitiveness. The objective is
to develop an optimum salaried staffing level that will improve Bethlehem�s
overall performance and its Return on Net Assets (RONA).
About
one-third of the reduction has already been achieved, and every attempt will be
made to accomplish the additional reductions by attrition. About 60% of
the reduction will be achieved by June 1, 2000. Affected employees will be
notified by management, and they will be provided all benefits for which they
are eligible in accordance with the provisions of the Corporation�s human
resources policies and programs.
Bethlehem said that it regrets the effect this action will have on its employees and their families. However, business conditions in the domestic steel industry necessitated this cost reduction action.