Arco Tower to Be Without Its Namesake, Atlantic Richfield, Come March

It’s official: Arco is saying farewell to Arco Plaza, its home since 1972.

“We will be moving as part of the cost-cutting program announced in October,” Atlantic Richfield Co. spokeswoman Linda Dozier said Tuesday. At the time, Arco said it was plucking its executives out of the plush top two floors of Arco Tower, one of twin 52-story landmark buildings on Flower Street in downtown Los Angeles, because its headquarters costs were too high.

Now the decision has been made to quit all 11 floors, starting in March, and move to another downtown building that houses the oil giant’s products division. That building, Arco Center at 333 S. Hope St., once was the headquarters of Security Pacific Bank, which was purchased by BankAmerica Corp. in 1992.

As part of its $500-million cost-slashing campaign, Arco is eliminating 1,200 jobs, primarily in Los Angeles and in Plano, Texas. The company also has cut capital spending plans by 25%.

In all, 325 Arco employees will move and Arco will be seeking to sublease 275,000 square feet of office space. Before the layoffs, 400 permanent and 250 temporary Arco employees worked in Arco Tower.

Arco Plaza is owned by Shuwa Investments Corp. of Japan, which could remove the Arco name in accordance with industry practice of naming a building after the biggest tenant. Shuwa’s leasing broker did not return a reporter’s telephone call on Tuesday. Shuwa has put Arco Plaza up for sale as part of the sell-off of its U.S. real estate portfolio.

Arco Plaza generated some controversy because its construction required the demolition of the Richfield Building, a 12-story black-and-gold Art Deco masterpiece. Richfield Oil Corp. merged with Atlantic Refining in 1966 to become Atlantic Richfield.

But the austere Arco Tower is not without its charms, including panoramic views. Looky-loos should ask to see the gas-powered fireplace in Arco Chief Executive Mike Bowlin’s soon-to-be former office on the 51st floor, which company lore holds to have been installed at significant expense by a Bowlin predecessor.