DuPont to slash 1,700 jobs

After having announced the combined merger with Dow Chemical http://www.plasticsandrubberasia.com/dec2015/company8.html DuPont says it will cut 1,700 jobs beginning of the year, as part of its 2016 global cost savings and restructuring plan designed to reduce US$700 million in costs compared with 2015. It said, “The 2016 cost reductions include a range of structural actions across all businesses and staff functions globally to operate more efficiently by further consolidating businesses and aligning staff functions more closely with the businesses. The new plan builds on the company’s previous operational redesign initiative.”

The plan further simplifies the company’s structure into fewer, larger businesses with integrated functions, leading to sustainable cost reductions, faster decision making and closer connections to end markets. The company says it will begin implementation of these changes immediately.

Approximately 10% of DuPont’s global workforce of 54,000 will be impacted.

DuPont also highlighted 2016 macroeconomic expectations. Given global economic conditions in agriculture and emerging markets, the company expects sales growth in 2016 to be challenging. Currency headwinds are expected to be about US$0.25 per share, due to the continued strengthening of the US dollar primarily against the Brazilian Real. The company also expects US$0.05 to US$0.10 per share of pressure from a higher base tax rate, reflecting expectations of the geographic mix of earnings and cost savings that will be recognised primarily in the US. The company plans to provide full-year 2016 guidance during its fourth-quarter 2015 earnings announcement scheduled for Jan. 27, 2016.