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 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

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...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Igor Chapurin
Chapurin

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search