Further to their announcement in December, when they announced that they were working towards a US$900 million cost improvement for 2005, DuPont have said they will axe 3500 positions from its global workforce, as well as a further 450 contract positions.
DuPont expect to effect these reductions before the end of the year. They aim to reduce 3000 positions through severance programmes and a further 500 through normal attrition. The reduction equate to a total workforce decrease of 6%.
Most of the positions that will be phased out will come from North America and Western Europe.
The job reductions are expected to yield cost reductions of $US325 million. A further US$375 million in reductions are expected to come from fixed cost reductions by reducing external spending on things like external contractors, supplies procurement, telecommunications and information technology expenses. The remaining US$200 million worth of cost reductions will come from SKU reductions including simplification of manufacturing processes and other projects relating to energy utilization, improving product yields and sourcing optimization.