Dow Chemical to streamline, cut up to 1,750 jobsStaff writer ▼ | May 4, 2015
The Dow Chemical Company announced a series of actions to streamline the organization and optimize its footprint as a result of the company’s pending separation of a significant portion of its chlorine value chain.
Reorganization Approximately 3 percent of the global workforce to go
The actions will further accelerate Dow’s value growth and productivity targets, and will result in a reduction of approximately 1,500 - 1,750 positions, or approximately 3 percent of the global workforce. In parallel, the Company is also announcing additional minor adjustments to its asset footprint to enhance competitiveness.
The Company will take charges totaling approximately $330 million – $380 million in the second quarter of 2015 for asset impairments, severance and other costs related to these measures, which are expected to be completed during the next two years. Once fully implemented, these actions are expected to result in approximately $300 million of annual operating cost savings.
"At our Investor Day last fall, we committed to a new, three-year $1 billion productivity drive. 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.
"We executed against each of our financial, operational and strategic objectives again in the first quarter, and 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."
In parallel, minor asset footprint adjustments will be made to select manufacturing facilities. The facilities impacted represent less than one percent of the Company's net property value and include minor consolidation and shut downs in response to changing market dynamics and to position the relevant businesses for long-term growth.
The company will involve local stakeholders as defined in each country and in compliance with relevant information and consultation processes. ■