Rohm and Haas, the Philadelphia-based chemical maker being bought by Dow Chemical, said today that it would slash a further 900 jobs.
The company, which cut 925 jobs in June as it reduced production, is aiming to make $90 million in annual savings from the latest headcount cull. It will also take a $90 million charge for the restructuring and for the impairment of some assets.
Rohm and Haas plans to adjust its production schedules and freeze discretionary spending and salaries.
The company is awaiting regulatory approval for its takeover by $15.3 billion takeover by Dow.
Pierre Brondeau, chief operating officer, said: "Our actions today are intended to adjust our operations to current business conditions, which reflect softening markets worldwide."
The takeover was put in danger when Kuwait pulled out of a $17.4 billion joint venture at the last minute last month. Dow had wanted to use part of the cash from the venture to pay for Rohm and Haas.
Dow pushed ahead with the deal and now needs approval from the US Federal Trade Commission to complete the acquisition.
The chemicals industry has been hit by a fall in demand for its products by manufacturers in the global economic downturn. Dow said last month that it would cut 5,000 full-time jobs and 6,000 contractors, as well as leaving many of its plants to idle.
Shares in Rohm and Haas dropped 2.3 per cent to $59.20 each at 11.30am.
Source : TimesOnline
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]
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