It might help to describe how you intend to use the reshaped data. You may be adding unneeded complexity with additional variables.
Data want;
set have;
if status = 1 then Status1 = 1;
else if status in (2,3) then status2 = status;
run;
maybe. "1st status" is not legal for variable names.
If you no longer want the Status variable in the data set then drop it.