Summary
E. I. du Pont de Nemours and Company (DuPont) announced a significant global work force reduction of approximately 3,500 positions (6% of its workforce, excluding INVISTA) and 450 contractor positions. This reduction, expected to be largely completed through severance programs and normal attrition by December 31, 2004, primarily impacts North America and Western Europe. These actions are a core component of DuPont's previously announced $900 million cost improvement program, aiming for annualized savings of $900 million by 2005. The company anticipates a one-time charge of 17-19 cents per share in the second quarter of 2004 related to these restructuring efforts.
Key Highlights
- 1DuPont is reducing its global workforce by 6%, or 3,500 positions, excluding its INVISTA subsidiary.
- 2An additional 450 contractor positions will be eliminated.
- 3These workforce reductions are part of a broader $900 million cost improvement program targeted for full annualized savings by 2005.
- 4The company expects to realize approximately $325 million in annualized savings from the workforce reductions.
- 5The majority of the workforce reductions will occur through severance programs and normal attrition, primarily impacting North America and Western Europe.
- 6DuPont anticipates a one-time charge of 17-19 cents per share in the second quarter of 2004 for severance costs.
- 7The company is also focusing on other cost-saving measures, including reduced external spending and SKU rationalization.
Frequently Asked Questions
The workforce reduction is a key component of DuPont's $900 million cost improvement program, aimed at enhancing competitiveness and aligning resources with market needs, especially following the anticipated separation of its INVISTA subsidiary.
The company expects to eliminate these positions by December 31, 2004, through severance programs and normal attrition. The impact will be primarily in North America and Western Europe.
DuPont anticipates a one-time charge of approximately 17-19 cents per share in the second quarter of 2004, primarily for employee severance costs. The company expects these actions to contribute significantly to its goal of $900 million in annualized cost savings by 2005.
No, DuPont states that these cost improvement actions have not diminished its focus on growth. The company continues to drive top-line growth through improving sales and marketing effectiveness, enhancing customer focus, and accelerating innovation.