DuPont Cuts 4% of Workforce; Polyester, Nylon Hit Hard.(Brief Article)(Statistical Data Included)

Chemical Week, April, 2001 by D'AMICO, ESTHER

DUPONT SAYS IT WILL CUT 5,300 JOBS worldwide and shut certain operations in the U.S. and Europe, mainly in its polyester and nylon fiber businesses, citing weakening conditions in the U.S. apparel and textile markets. The company will slash 4,000 positions, 4% of its total, and eliminate 1,300 contract jobs, resulting in annualized savings of $400 million by 2002. It will take a one-time, pre-tax charge of 40 cts-45 cts/share, about $420 million, in the third quarter. About 75% of the cuts will be in the U.S.

DuPont CEO Charles O. Holliday says the restructuring was required to improve long-term competitiveness. "This is not about cutting costs for the sake of short-term earnings," he says. About half of the job cuts will be in nylon and polyester...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.