Home / Knowledge / News / Textiles / Eastman Chemical to cut jobs; reduces logistics costs
Eastman Chemical to cut jobs; reduces logistics costs
Mar '09
Eastman Chemical Company announced it is taking additional actions to further reduce costs by more than $100 million in response to the ongoing global economic recession. These actions, in addition to those announced in December, increase Eastman's expected total cost savings in 2009 to more than $200 million. Eastman is taking the following actions to achieve these savings:

• Reducing base pay for U.S. employees by 5 percent effective March 30, 2009, with equivalent cost reductions in bargaining unit sites and locations outside the U.S.
• Implementing a global targeted reduction in force of between 200-300 employees within the next 4-6 weeks
• Reducing non-critical maintenance costs
• Reducing logistics costs
• Further reducing discretionary spending

“The severity of the current economic environment led to the actions we are announcing,” said Brian Ferguson, chairman and CEO. “Despite our expectation that sales volume will continue to be at depressed levels, we remain committed to taking the necessary actions to deliver solid operating cash flow in 2009 that will more than support both our dividend and capital expenditures.”

In addition to taking actions to reduce costs, the company lowered its budgeted 2009 capital expenditures to between $300 and $350 million. The company also expects to generate approximately $100 million of cash from working capital in 2009, assuming continued difficult economic conditions and raw material and energy costs similar to current levels.

Commenting on the outlook for full-year 2009 earnings, Ferguson said, “While visibility into global demand continues to be limited, the actions we are taking to reduce costs position us to better weather the storm.

Assuming a modest improvement in demand that increases our capacity utilization from the current rate of approximately 71 percent to between 75-80 percent for the remainder of the year, we expect our full-year 2009 earnings per share will be between $2.00-$3.00 excluding charges related to cost cutting actions.”

The cost reduction actions announced (9th March) will result in a first-quarter 2009 pre-tax restructuring charge of approximately $30 million.

Eastman Chemical Company

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sonam & Paras Modi

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


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search