Dow Chemical to Cut 2,500 Jobs Amid Corning Restructuring
28 Giugno 2016 - 4:50PM
Dow Jones News
Dow Chemical Co. on Tuesday said it planned to cut 2,500 jobs
globally, or about 4% of its workforce, as it restructures Dow
Corning Corp., which it now owns completely.
Earlier this month, Corning Inc. had exchanged shares of
silicone company Dow Corning for cash and an interest in a
semiconductor company, ending a 73-year joint venture with Dow
Chemical.
Dow Chemical said Tuesday that it would shut down its silicones
manufacturing facilities in Greensboro, N.C., and Yamakita, Japan,
as well as certain administrative, corporate and manufacturing
facilities.
The company said shutting those facilities would help it be more
competitive and streamline costs. The chemical company said it
expected to save $500 million a year after restructuring
ownership.
The moves come as Dow Chemical works to complete its megamerger
with DuPont Co. The new company, DowDupont, will eventually
separate the combined businesses into three units focused on
agriculture, industrial materials and specialty products expected
within three years. Combined, the companies employ about 100,000
employees.
Dow Chemical said it expected to complete the Dow Corning
closings and cuts within the next two years. Dow Chemical said it
sees taking a charge in its second quarter between $410 million and
$460 million, for various costs, including severance.
Dow stock has fallen 5.1% over the past month and rose 2% to
$50.50 in premarket trading.
Write to Brittney Laryea at brittney.laryea@wsj.com
Corrections & Amplifications: The moves announced Tuesday by
Dow Chemical are related to the company's ownership of Dow Corning.
An earlier version of this story and the caption on the picture
incorrectly suggested the moves were related to Dow Chemical's deal
with DuPont Co.
(END) Dow Jones Newswires
June 28, 2016 10:35 ET (14:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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