DuPont Responds to Economic Slow Down, Will Reduce Workforce by 4000
Press release from the issuing company
WILMINGTON, Del., April 2, 2001 – DuPont today announced it will further align resources consistent with the specific missions of its individual businesses. These actions will reduce the company's global employee workforce by about 4,000, or 4 percent. DuPont will also reduce the number of contract personnel by about 1,300 and shut down less competitive manufacturing assets.
"Taking actions that result in people losing their jobs is the hardest decision we as leaders will ever have to make," said DuPont Chairman and CEO Charles O. Holliday, Jr. "However, we are doing what is necessary to assure the competitiveness of our individual businesses and the performance of DuPont as a whole."
Responding to weakening business conditions in the U.S. apparel and textile markets, DuPont will accelerate the rationalization of its polyester and nylon fiber businesses to improve financial performance. "We are very sensitive to our employees' feelings and concerns," Holliday said. "We will continue to look for redeployment opportunities for as many employees as possible, and will help other employees transition to new careers outside of the company. We recognize and appreciate their many contributions to DuPont."
Approximately 75 percent of the affected employees and contractors are in the United States. Projected annual payroll savings, including reduction in contractor costs, are on the order of $400 million pre-tax. DuPont expects to achieve about one-third of the projected cost benefit in 2001, and substantially all in 2002.
DuPont expects to take a one-time second quarter charge of approximately 40–45 cents per share as a result of these actions. Roughly half of this estimated charge will be for employee severance costs, with the remainder principally for asset shutdowns and related dismantlement expenses. Since plans are still being finalized, the actual one-time charge to earnings will not be available until the end of the second quarter.
"These actions will enable us to more rapidly achieve our goal of sustainable growth," said Holliday. "While reducing resources in some businesses, we are adding resources in a number of long-term growth markets – for example, telecommunications, electronic displays and bio-based materials – as well as in fast growing countries such as China. Across DuPont, each business is doing what it needs to do to be successful, consistent with customer needs. We will be a stronger company as a result."
WhatTheyThink is the global printing industry's leading independent media organization with both print and digital offerings, including WhatTheyThink.com, PrintingNews.com and WhatTheyThink magazine versioned with a Printing News and Wide-Format & Signage edition. Our mission is to provide cogent news and analysis about trends, technologies, operations, and events in all the markets that comprise today’s printing and sign industries including commercial, in-plant, mailing, finishing, sign, display, textile, industrial, finishing, labels, packaging, marketing technology, software and workflow.