DOW Chemical has announced it is planning to cut 2,500 jobs globally, approximately 4% of its workforce, as it restructures Dow Corning following the recent merger with Corning.
Dow will also shut down its silicones manufacturing facilities in Greensboro, North Carolina, US and Yamakita, Japan, plus several corporate and administrative facilities. The company expects to pay US$410m–460m in Q2 to cover the asset impairments and redundancy deals, to be completed over the next two years.
Dow says it will save costs by combining the workforces at existing facilities and optimise its supply and services for R&D with fewer facilities. It expects to save US$500m/y after restructuring.
Andrew Liveris, CEO of Dow, said: “With these difficult but necessary actions, we are bringing together the best of each company’s talent and technology, and accelerating Dow’s strategy to go narrower and deeper into attractive, targeted market sectors.”
The move will consolidate Dow’s assets before it completes its megamerger of equals with DuPont, expected to be complete within the next three years. Once closed, the new DowDuPont will shortly split the business into three independent tax-free spin-off companies – specialising in agriculture, materials science, and “special products”.
Combined, the companies will employ around 100,000 people.
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