DuPont axes 2000 jobs in textiles and interiors

06 May 2002 00:00  [Source: ICB]

Goodmanson: the
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 down.

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, polyester, Lycra 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 market realities'.

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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