UpdateDuPont cuts 2,000 more jobs to reduce costs in weak market

07 May 2009 14:44  [Source: ICIS news]

(Adds background, quotes throughout)

LONDON (ICIS news)--DuPont will cut 2,000 more jobs to reduce costs amid weaker global market conditions, the US chemicals major said on Thursday.

DuPont said the job cuts would help preserve its strong cash position amid sharp declines in demand, particularly from the automotive, construction and industrial markets.

The company expected to gain over $70m (€52.5m) from the measures in 2009 and about $225m in annual savings by the end of 2010.

DuPont would take a pre-tax charge for the restructuring plan totalling $340m-390m in the second quarter of 2009, of which approximately 40% was expected to be non-cash, the Wilmington, Delaware-based company said.

The restructuring plan was expected to help DuPont to achieve its target of increasing 2009 fixed cost reduction from $730m to $1bn.

"The expanded actions will help preserve our strong cash position, streamline and accelerate our approach to markets and better position our businesses as global economies rebound," said DuPont CEO Ellen Kullman. 

The new restructuring measures come in addition to the 2,500 job cuts DuPont announced in December 2008.

The company did not specify what areas of the business would be affected or whether chemicals production would be hit by the lay-offs.

“As a market-driven science company with strong growth opportunities, our objective is not simply to weather the recession and wait for recovery. Our goal is to emerge from this global recession stronger, faster and more agile than ever before,” added Kullman.

DuPont said it would continue aggressive actions to reduce costs and capital expenditures, in addition to maintaining investment for high-growth, high-margin businesses including seed products and photovoltaics. 

The company’s first quarter net profits slumped 59% year on year to $488m as most of its businesses continued to be badly hurt by the global recession.

The downturn continued to be broad and deep and was reflected in 20% lower quarterly sales for the company at $6.9bn.

DuPont reduced its full year earnings target, saying it was “working with urgency and agility to stay ahead of the worst global recession since the 1930s”.

($1 = €0.75)

To discuss issues facing the chemical industry go to ICIS connect

By: Mark Watts
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly