Citing a weak economy and rising fuel costs, Maui Land & Pineapple Co. said it will lay off 274 workers, more than a quarter of its workforce, as part of a reorganization plan.

The Kahului-based company, one of Maui's largest private employers, said the layoffs are projected to save the company $11 million in annual expenses. The company is expected to notify the affected workers this morning.

Maui Pineapple Co. will bear the brunt of the layoffs with the elimination of 204 jobs, the company said. That unit has suffered more than $100 million in capital investments and operating losses over the past four years, the company said.

The staff at Maui Land & Pineapple's Kapalua Resort will be reduced by 46 positions and another 24 jobs will be cut from the corporate and community development units, the company said.

"This is a difficult but necessary decision as we respond to higher energy-related costs in our operating units and sluggish conditions in the real estate market," said David Cole, Maui Land & Pineapple chairman, president and chief executive officer. "Even when workforce reductions are executed well, they are painful. MLP has attracted a team of talented and dedicated professionals, some of whom must leave to strengthen those who remain."

The cuts represent a 26.2 percent decrease in the company's workforce of 1,045 employees. The company said the cuts affected management and labor positions, although a breakdown was not released.

William Kennison, ILWU Local 142 Maui Division director, said late yesterday afternoon he did not know how many union workers will be affected. Union leaders were to meet with company officials this morning.

"It's a bad situation with the way the economy is going and with fewer tourists coming over. It's really taking a toll," Kennison said. "You have this many layoffs and there are not many jobs to be found right now. We just went through the Molokai Ranch closing."

Kennison said he fears that things could get worse on Maui.

"When we had 9/11 the economy went down and tourism went down, but we could see the light at the end of the tunnel and there were things that could be done about it," he said. "This is different. Unless fuel costs come down, there's nothing we can do about it. We're in a real rough spot right now."

CUTS UNAVOIDABLE

Maui Mayor Charmaine Tavares said the announcement of the layoffs represented a "sad day" for the employees and their families.

"I'm sure it was a very difficult decision for the company, whose roots in agriculture in our community go back generations," Tavares said in a statement. "It is an unfortunate situation and the county will work with state Workforce Development services and our nonprofit community to offer support to those impacted."

The state Department of Labor and Industrial Relations has activated a "Rapid Response Team" to assist the employees who will lose their jobs. A meeting for the workers will be held at 10 a.m. Tuesday at the Kapalua Training Center, 700 Village Road, in Lahaina.

Maui Land & Pineapple said the company also will assist the affected employees with severance packages and other programs. Severance costs are estimated at $3 million, offsetting some of the immediate savings from the reorganization, the company said.

The company said it had no choice but to cut the jobs because skyrocketing costs of fuel, fertilizer, packaging and transportation "outstripped the company's ability to increase prices." As part of the reorganization, Maui Land & Pineapple has consolidated some marketing, sales, accounting and purchasing functions.

Wes Nohara has been appointed general manager for all agricultural operations, including Maui Pineapple Co. and Kapalua Farms.

LATEST IN LAYOFF TREND

In April, Maui Land & Pineapple began trading on the New York Stock Exchange after switching from the American Stock Exchange. The change was made in hopes of enhancing the company's shares.

During the first quarter, Maui Land & Pineapple reported a net loss of $740,000, the fourth consecutive quarter that it had reported a loss.

The Maui Land & Pineapple layoffs are the latest in a slew of job losses in a little more than a year in Hawai'i. Last June, the company shut down its canning operations, leaving 120 workers without jobs.

This year, nearly 2,100 airline employees lost their jobs with the shutdown of Aloha and ATA airlines. Hundreds of other jobs were lost when NCL America pulled two ships out of the Hawai'i market and Molokai Ranch ceased operations.

In the past two weeks, two hospitals on the Big Island laid off more than 110 workers, and The Advertiser, Hawai'i's largest daily newspaper, announced it would lay off 54 employees.