Dow Chemical to Cut 2,500 Jobs Amid Corning Restructuring

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 [e-mail]

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.