Dow Chemical Plans to Reduce Workforce by 3%

By Tess Stynes 

Dow Chemical Co. expects to reduce its global workforce by roughly 3%, part of an effort to streamline the company ahead of the pending spinoff of a significant portion of its chlorine business.

In a news release Monday, Dow said "minor footprint adjustments" will be made to certain manufacturing operations, which are expected to represent less than 1% of the company's net property value. The changes include "minor consolidation and shut downs" in response to a changing market.

Dow said the streamlining plan, set to be completed over two years, is expected to result in a workforce reduction of 1,500 to 1,750 positions. The company expects to post related charges and write-downs of $330 million to $380 million during the second quarter. With the latest moves, Dow is aiming to save roughly $300 million a year in operating costs.

Dow, based in Midland, Mich., recently agreed to spin off a significant portion of its chlorine business to smaller chemical-maker Olin Corp. in a cash-and-stock deal valued at $5 billion, to shift toward making higher-profit chemicals and products. That deal is expected to close by the end of the year.

The chemical maker last month reported that its profit rose 41% in the first quarter, but the company could have made more if falling crude-oil prices and the strength of the U.S. dollar compared with global currencies hadn't cut into sales.

Write to Tess Stynes at [e-mail]

Access Investor Kit for The Dow Chemical Co.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US2605431038

Access Investor Kit for Olin Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US6806652052

Subscribe to WSJ: http://online.wsj.com?mod=djnwires