DowDuPont Inc. (DWDP) is focused on saving a little green.
The recently combined chemicals giant announced Thursday, Nov. 2, that it will shrink its global workforce, consolidate buildings and facilities and shut down selected assets in a plan aimed at generating cost savings of $3 billion over the coming years.
The company didn't disclose how many jobs would be affected, but noted the cost reduction plan comes after the company incurred $180 million in pre-tax charges during the third quarter and expects another $1 billion in charges for the fourth quarter.
"These actions are designed to integrate the organization post-merger and create strong foundations for the three intended companies," DowDuPont said. The program will reach a 70% run rate within 12 months and a 100% run rate within 24 months.
After Dow Chemical and DuPont combined on Aug. 31 following months of regulatory scrutiny, the newly minted firm began the process of dividing itself into three companies that will focus separately on agriculture, specialty products and materials science. The plan to split has come under fire from activist investors including Jana Partners LLC and Trian Fund Management LP.
The bold cost savings plan came as DowDuPont delivered its first quarterly earnings report since it combined. In the third quarter, DowDuPont notched 55 cents per share in adjusted earnings, which topped FactSet analyst expectations of 42 cents per share. Sales totaled $18.3 billion, which beat analyst expectations of $17.7 billion.
DowDuPont stock was lower about 1% to $72.65 just after the market opened Thursday.
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