Home / Knowledge / News / Textiles / Eastman takes additional cost reduction actions
Eastman takes additional cost reduction actions
19
Dec '08
Eastman Chemical Company announced a series of actions the company is taking to respond to current economic conditions while continuing to pursue its plans for growth.

The company said that it will reduce costs in 2009 in excess of $100 million, of which approximately $80 million is expected to come from labor-related costs.

Eastman announced the following actions will be taken by early 2009:

- Elimination of planned 2009 wage and salary increases
- Permanent change in the company's U.S. vacation policy by reducing the maximum vacation carry-over amount
- Elimination of overtime wherever possible
- Reduction in use of contractors and part-time labor
- Reduction in management staff

The reduction in management staff, which was recently completed, will result in a restructuring charge of approximately $5 million during the fourth quarter. The other actions being taken will not result in restructuring charges.

The company's locations outside the U.S. are taking similar actions to reduce labor costs. In addition, the company is taking actions to reduce non-labor costs, working capital and capital spending.

“We have taken a number of actions over the past several years that better position the company for economic downturns,” said Eastman Chairman and CEO Brian Ferguson. “In addition, the company's flexible workforce structure allows us to quickly and effectively respond to today's challenging economic environment.”

“Given the sudden and dramatic deterioration of the global economy, we are slowing work on some of our projects as it makes sense to do so,” added Ferguson. “We continue to believe, however, that the company is well positioned to weather this current economic crisis, and that we can successfully manage costs while pursuing our plans for growth.”

Eastman Chemical Company

Must ReadView All

Textiles | On 2nd Dec 2016

Indian currency crisis impacts global cotton market

The currency crisis in India, marked by insufficient supply of new...

Huang Wei from Fiber Raw Material Dept of Sinopec Chemical Commercial Holding speaking at the Forum

Textiles | On 2nd Dec 2016

Huge potential for nylon consumption: Experts

There is huge potential for increase in nylon consumption said...

Apparel/Garments | On 2nd Dec 2016

Aditya Birla Group to establish apparel unit in Odisha

Aditya Birla Retail and Fashion Ltd. (ABFRL) is establishing a new...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search