DuPont today announced it will further
align resources consistent with the specific missions of its individual
businesses. These actions will reduce the company's global employee
workforce by about 4,000, or 4 percent. DuPont will also reduce the
number of contract personnel by about 1,300 and shut down less
competitive manufacturing assets.
"Taking actions that result in people losing their jobs is the hardest decision
we as leaders will ever have to make," said DuPont Chairman and CEO
Charles O. Holliday, Jr. "However, we are doing what is necessary to
assure the competitiveness of our individual businesses and the
performance of DuPont as a whole."
Responding to weakening business conditions in the U.S. apparel and
textile markets, DuPont will accelerate the rationalization of its polyester
and nylon fiber businesses to improve financial performance. This will result
in a combined polyester and nylon reduction of about 2,000 employees – or
about half of the total company employee reductions. Specific actions are:
In the Polyester Enterprise, the polyester filaments business unit will
accelerate the benefits of its manufacturing alliance with Unifi
Corporation by shutting down older filaments manufacturing
operations and transferring production to lower cost, more modern
and flexible assets. In addition, other polyester manufacturing
operations will be streamlined to assure a sustainable competitive
In the Nylon Enterprise, the apparel segment will continue its
previously announced strategy of focusing on differentiated products
and modernizing its manufacturing assets. As a result, the
company will shut down less competitive production lines.
Other DuPont business units are taking focused actions to improve
profitability consistent with their specific revenue, earnings and cash
objectives. The most significant of these are:
The company's agriculture-related businesses – Pioneer, Crop
Protection and Nutrition & Health – will accelerate their integration of
R&D, staff and commercial organizations.
The Lycra® business will reduce manpower at U.S. and European
facilities to realize efficiency gains enabled by its new technology
platforms. These platforms include significantly advanced and more
productive spinning technology to be used in previously announced
capacity expansions in South America and Asia.
Internal staff support services will reduce positions commensurate
with restructurings across the businesses they support.
"We are very sensitive to our employees' feelings and concerns," Holliday
said. "We will continue to look for redeployment opportunities for as many
employees as possible, and will help other employees transition to new
careers outside of the company. We recognize and appreciate their many
contributions to DuPont."
Approximately 75 percent of the affected employees and contractors are in
the United States. Projected annual payroll savings, including reduction in
contractor costs, are on the order of $400 million pre-tax. DuPont expects
to achieve about one-third of the projected cost benefit in 2001, and
substantially all in 2002.
DuPont expects to take a one-time second quarter charge of approximately
40–45 cents per share as a result of these actions. Roughly half of this
estimated charge will be for employee severance costs, with the remainder
principally for asset shutdowns and related dismantlement expenses.
Since plans are still being finalized, the actual one-time charge to earnings
will not be available until the end of the second quarter.