DOW Cuts Staff and Closes 20 Plants

Dow Chemical Co. (DOW) said it will slash 5,000 full-time jobs—about 11% of its total work force. It will also close 20 plants and sell several businesses to rein in costs.

The company expects the moves to save about $700 million per year by 2010. Dow also will temporarily idle 180 plants and prune 6,000 contractors from its payroll. Due to this latest move, Dow said it will take a fourth-quarter charge of $700 million, or 50 cents to 60 cents per share, to cover $350 million in severance payments and $350 million worth of plant shutdown costs.

But the company said it has no plans to cut its dividend, which has been issued quarterly for nearly a century.

by Mark Anderson |  12/08/08  |  Stocks: DOW,