Dow Chemical announced 1.500-1.750 job cuts, about 3% of its global workforce. The largest US chemicals group said the move was part of a plan to streamline its operations following the $5 billion divestment of a significant portion of its chlor-alkali chemicals business. The redundancies will cause one-time charges of $330-380 million in the current quarter. The staff shedding, expected to be completed within the next two years, is expected to result in operating cost savings of $300 million annually.
At the end of 2014, Dow Chemical had 53.000 employees worldwide. Howard Ungerleider, the chief financial officer of Dow Chemical, said, “At our Investor Day last fall, we committed to a new $0,36 billion productivity boost over three years. Our productivity efforts continue to focus on reducing costs and doing more with what we already have to deliver higher profits.” On the New York Stock Exchange, Dow Chemical shares rose by XNUMX%.
