WASHINGTON - DuPont's plans to cut about 2 percent of its global workforce will not have any impact on the company's Washington Works plant, officials said Tuesday.
Ellen Kullman, DuPont chairwoman and CEO, Tuesday announced a targeted restructuring program that will eliminate about 1,500 global jobs over the next 12-to-18 months.
"Today, we are taking additional actions to improve competitiveness and accelerate market-driven innovation and growth by fine-tuning the organization, eliminating costs and expanding beyond our everyday focus on productivity," Kullman said. "We continue to execute well in many parts of the company, and certain segments are outperforming despite market volatility. Weaker than expected demand in titanium dioxide and photovoltaic markets contributed to the decline from last year's record third-quarter earnings. We are addressing these challenges now to position ourselves for improved performance."
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The DuPont Washington Works sign is shown outside of the plant in Washington, W.Va.
The company had 70,000 employees worldwide at the end of last year, up from 60,000 a year earlier, according to a company release.
The Washington Works plant employs about 1,900. Robin Ollis Stemple, public affairs consultant, said the local plant has 1,650 DuPont employees and about 250 contract partner employees.
Washington Works Plant Manager Karl Boelter said the local operation is not impacted by the announcement.
Fact Box
Restructuring
- Ellen Kullman, DuPont chairwoman and CEO, Tuesday announced a targeted restructuring program that will eliminate about 1,500 global jobs over the next 12-to-18 months.
- The company had 70,000 employees worldwide at the end of last year, up from 60,000 a year earlier, according to a company release.
- According to estimates, the plan will deliver pre-tax cost savings of about $450 million.
"This morning's announcements include staff reductions along with other strategic planning initiatives. These reductions will be focused on corporate and functional groups worldwide," Boelter said. "Our Washington Works plant operations are not impacted by this announcement."
The company commenced a restructuring plan to increase productivity, enhance competitiveness and accelerate growth.
DuPont is taking additional steps in key areas worldwide to improve competitiveness and accelerate growth and market-driven innovation by fine tuning the organization, eliminating costs and expanding targeted productivity programs, Boelter said
"We need to be efficient, effective and productive in order to grow and compete."
According to estimates, the plan will deliver pre-tax cost savings of about $450 million ($300 million in 2013) by eliminating corporate costs supporting performance coatings and taking additional cost-cutting actions to improve competitiveness.
Third-quarter 2012 consolidated net sales of $7.4 billion were 9 percent lower than the prior year.
Company officials said the company remains on track to achieve its full-year 2012 productivity targets for both fixed costs and working capital.
"The company is constantly working to outperform the competition and to ensure we stay ahead of changing market trends and are positioned to grow in spite of dynamic market challenges," Boelter said. "Our core values remain the same, including safe plant operations, protecting the environment and a commitment to our local communities."
