DuPont Trimming Costs

The chemical giant says a big layoff plan isn't necessary.
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DuPont

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set a streamlining plan that aims to boost productivity and slash a billion dollars from working capital over three years.

The chemical giant said a broad-based severance program won't be required. The company will use normal attrition, contractor displacement and redeployment of employees to business growth and improvement projects to meet expected staffing needs.

"We are seeing a structural shift in the global industrial economy that is impacting our businesses, certain customers and suppliers," CEO Charles Holliday said. "While we have the right strategies, we must and we will significantly accelerate their execution to increase shareholder value."

The Wilmington, Del., company said Chief Operating Officer Richard R. Goodmanson is leading the actions to slim down DuPont's supply chains and support functions. DuPont said it will track fixed costs as a percentage of sales to track progress of this program.

Chief Financial Officer Gary M. Pfeiffer is leading actions to accelerate an additional 3-point improvement in the company's return on invested capital. Chief Science & Technology Officer Thomas M. Connelly is leading actions to accelerate science-based innovation by 30%. Connelly is also overseeing the launch of DuPont Bio-Based Materials, which applies biology to renewable feedstocks to create unique and compelling solutions in the materials, energy, surfaces and medical markets.

"Bio-Based Materials is the right science at the right time, and DuPont has the science lead to bring these new innovations to market," Connelly said. The components of the company's Bio-Based Materials pipeline are estimated to have a net present value of more than $3 billion. Bio-Based Materials Vice President and General Manager John P. Ranieri will lead this expansion.

On Monday, DuPont fell 28 cents to $43.03.