DuPont axes 2000 jobs in textiles and interiors
06 May 2002 00:00 [Source: ICB]
cuts are necessary
DuPont has announced 350 job cuts in Europe as part of a massive
round of redundancies in its textiles and interiors division.
Worldwide, a total of 2000 workers are to be discarded. More than
two-thirds of these are in the company's US operations, including
closure of the Terathane
polytetramethylene ether glycol
plant at Niagara Falls in upstate New York. Some of the spandex
manufacturing plant at Waynesboro, Virginia, will also be shut
In Europe, 110 jobs will be lost in Germany, 120 in the
Netherlands, 75 in the UK and 45 in other countries.
The cuts represent over 10% of the total DuPont Textiles and
Interiors (DTI) workforce. DTI, which includes the nylon
and spandex fibre businesses, plus their
intermediates and joint ventures, is the world's biggest integrated
textile fibre and interiors business with annual revenues of
$6.5bn. It is due to be spun off as a separate wholly-owned
subsidiary by the end of 2003.
Richard Goodmanson, DuPont's chief operating officer, said the
restructuring was 'necessary to position DTI for success in a
highly competitive and rapidly consolidating industry ... we must
act quickly and decisively to match our resources with current
Goodmanson said the company is not expecting the redundancies to
reduce the company's revenues. Instead, he said, revenues will be
supported from 'more competitive facilities', while the job cuts
will slash costs by about $36m in 2002 and $120m in 2003.
The company will take a one-off charge of between $120m and $160m
in the second quarter for redundancy payments and plant shutdowns.
Most of the redundant staff will leave before August.
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