Michigan-based Dow Chemical Co. said Tuesday that it will cut about 2,500 jobs and close its manufacturing facilities in Greensboro and Japan to achieve $400 million in savings from taking full control of Dow Corning Corp.
The Greensboro site employs about 130 people, a spokesman told the Observer. Over the next two years, Dow Corning will move production from the Greensboro plant to other Dow Corning sites in North America.
Some employees will have an opportunity to work at other Dow or Dow Corning sites, while others will be eligible for a severance package and outplacement support, the spokesman said.
The 2,500 total job cuts account for about 4 percent of Dow’s global workforce, the manufacturer said in a statement.
Other ways Dow is achieving the cost-savings include combining energy contracts at large sites, combining information technology service structures and leveraging existing research and development knowledge management systems, the company said.
“With these difficult but necessary actions, we are bringing together the best of each company’s talent and technology, accelerating Dow’s strategy to go narrower and deeper into attractive, targeted market sectors, and setting the stage for the new Dow,” said Andrew Liveris, Dow’s chairman and CEO.
Dow said it plans to take a charge of $410 million to $460 million in the second quarter for asset impairments, employee severance and other costs related to the revamp. Bloomberg News contributed.