MIDLAND (dpa-AFX) - Dow Chemical Co. (DOW) Tuesday said that it will lay off about 2,400 employees, or five percent of the global workforce. The company also said it will close approximately 20 manufacturing facilities. Once fully implemented, these actions are expected to result in approximately $500 million of annual operating cost savings by the end of 2014.
The company said it will take charges totaling approximately $0.50 - $0.60 per share in the fourth quarter of 2012 for asset impairments and write-offs, severance and other costs related to these measures.
In addition, the company noted that it will further reduce capital spending and investments for targeted growth programs that are no longer a priority in this environment. These measures are expected to deliver an additional $500 million cash impact. Taken together with the $1.5 billion of measures the company has already initiated, this will bring the Company's stated cumulative intervention goal to $2.5 billion.
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