FAIRBANKS -- Alyeska Pipeline Service Co. will move 40 project engineers to Anchorage, Alyeska President David Wight said May 21.
The announcement brings to 100 the number of jobs lost from the company's Fairbanks office, though some positions from Valdez will be transferred north.
Alyeska announced in April it would cut 150 jobs statewide, with 60 positions from Fairbanks or along the pipeline route.
"It's a tough time," Wight told the Greater Fairbanks Chamber of Commerce.
The company began notifying employees of the changes May 21.
Alyeska, a consortium owned by six oil companies, has 1,049 employees. Only 900 will remain in the company's three divisions in Fairbanks, Anchorage and Valdez, Wight said. Anchorage and Valdez will lose about 90 jobs.
Many of the layoffs will occur in July and others will take effect by the end of the year.
The 40 engineers bound for Anchorage are part of the company's project department and the move will bring them closer to Alyeska contractors, Wight said.
City Mayor Steve Thompson expressed disappointment over the move. "It's unfortunate we don't have those contractors here in Fairbanks," he said.
Under a 1997 reorganization, Alyeska laid off 450 employees and moved 260 people to Fairbanks. Fairbanks, Anchorage and Valdez each gained human resources, accounting and finance departments, Wight said. Now those functions will be centralized in Anchorage.
Fairbanks North Star Borough Mayor Rhonda Boyles said she believes there is plenty of opportunity with military projects, such as the National Missile Defense project at Fort Greely, for those who want to stay in Fairbanks. She met May 21 with representatives from the Department of Defense, Fluor Alaska, the project's main contractor, and Boeing, the project's designer.
