Cytec to Cut 600 Jobs

Cytec Industries Inc. (NYSE: CYT), a Passaic County-based specialty chemicals and materials company, announced today it plans to shed some 600 jobs at its firm, as part of a restructuring plan to reduce costs and improve cash flow.

“It is our view that the current economic environment will extend at least throughout 2009,” said Shane Fleming, chairman and chief executive. “We must therefore take immediate actions to align our cost structure to the changing and challenging demand environment.”

Cytec said it expects the restructuring will result in 600 job cuts, or approximately 10 percent of the company’s total work force, mostly in the Specialty Chemicals product lines.

The company said ongoing initiatives to reduce costs and improve efficiencies include consolidation of manufacturing facilities, reduction in excess manufacturing capacity, migration to regional shared services, and streamlined business processes and organization. As part of these initiatives, Cytec said it expects to close its site in La Llagosta, Spain, and significantly reduce or shut down production of some product lines at its sites in Drogenbos, Belgium, and Hamburg, Germany.

While still not finalized, the company said it anticipates these initiatives should result in an estimated net pre-tax restructuring special item charge up to $140 million over the next several quarters. The restructuring plan is expect to yield $85 million in annualized cost savings by the end of 2009, the company said.

Source : NJBiz
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]