Phillips to Cut Jobs by 8%, Spending by 33%

Phillips Petroleum Co., the seventh-largest U.S. oil company, said it will cut 1,400 jobs, or 8% of its work force, and slash spending by about a third this year because of a continued oil-price slump. Phillips also will take $339 million in charges that will result in a loss for the fourth quarter. Excluding charges, the company said, it would break even or post a small loss. Analysts had expected Phillips to earn 12 cents a share. Several other oil companies have fired workers and cut spending because lower crude prices are hurting profits. Phillips’ profit plunged 73% in the third quarter, largely because of falling revenue from oil sales. The company expects the firings and cost cuts to save about $230 million annually. Phillips, with 17,200 employees worldwide, plans to cut 850 U.S. jobs, including 400 at its Bartlesville, Okla., headquarters, and 550 overseas. Shares rose $1.19 to close at $43.81 on the New York Stock Exchange.