Phillips said 8% of its work force will retire early.

The Bartlesville, Okla.-based oil company reported that between 1,900 and 2,000 of its U.S. employees have accepted a sweetened early retirement package. The package is part of Phillips Petroleum’s plan to reduce operating costs by $200 million this year. The company is streamlining its operations to help pay down the $4.5-billion debt that it took on in its successful takeover battles with Mesa Petroleum Chairman T. Boone Pickens Jr. and financier Carl C. Icahn.