Dow Chemical to cut 3% of workforce worldwide

GMT 16:31 2015 Monday ,04 May

Arab Today, arab today Dow Chemical to cut 3% of workforce worldwide

Dow Chemical
New York - AFP

Dow Chemical said Monday it would slash about 3 percent of its global workforce as a result of its deal to hive off chlorine activities into a new company.

The Dow Chemical Company said the layoffs will affect 1,500 to 1,750 jobs. It also announced "minor" adjustments to certain manufacturing facilities, including shutting some down, part of a $1 billion restructuring drive announced last year.

The moves, expected to be completed in the next two years, are "a result of the company's pending separation of a significant portion of its chlorine value chain," Dow said in a statement.

In late March, Dow announced a plan to carve out part of its chlorine businesses and merge it with rival Olin to form a company with revenues of nearly $7 billion, The company expects the transaction will close by the end of 2015.

Dow, which is under pressure from activist investor Daniel Loeb, predicted the new steps would generate $300 million in annual cost savings. It did not announce details of the layoffs and plant moves.

"Our productivity efforts continue to center on cost-out actions and doing more with the resources we have in place, all to enable higher earnings," said Howard Ungerleider, Dow's chief financial officer, in the statement.

"Today's announcement illustrates our ongoing commitment to the consistent implementation of our strategy moving forward and proactively addresses any stranded costs from the divestment of Dow Chlorine Products."

Dow said it would take about $330-380 million in charges in the second quarter for the new actions.

Shares in Dow were up 0.15 percent at $51.77 in early trade.

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