Dow Chemical Co said it would cut 1,500 to 1,750 jobs, or as much as 3 percent of its global workforce, as part of a broader plan to reduce costs by $1 billion over three years. Dow said the job cuts were being made as a result of its decision to sell a chunk of its century-old chlorine business to Olin Corp for $5 billion.
The chemical maker has been shedding its low-margin commodity businesses to focus on high-growth business such as packaging, electronics and agriculture.
Dow said on Monday it would also consolidate or close some manufacturing facilities, representing less than one percent of its net property value.
The company said it would record charges of about $330-$380 million in the second quarter ending June for asset impairments, severance and other costs.
The cost-cuts announced on Monday are expected to be completed over the next two years, Dow said, adding they would help Dow save $300 million in operating costs a year. Dow shares were up 0.4 percent at $51.90 in premarket trading.