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Dow Corning to Slash Jobs to Cut Costs

August 10, 2000|Bloomberg News

Dow Corning Corp., which has operated under Chapter 11 of the bankruptcy laws since 1995, said it will cut as many as 800 jobs, or as much as 8.4% of its work force. The elimination of 600 to 800 positions is expected to save Dow Corning, which is owned by Dow Chemical Co. and Corning Inc., at least $50 million a year. The cuts will be made throughout Dow Corning's offices. The maker of silicone-based products has spent the last two years trying to cut costs. The company is making the reductions because fewer people left through attrition than Dow Corning had expected, said Kevin Wiggins, spokesman for the Midland, Mich.-based company. Last month, Dow Corning said second-quarter net income rose 48% to $29.6 million, or $11.84 a share, from $20 million, or $8, a year-earlier. However, operating income fell 14%. In some cases, the company will offer outplacement services or, if those are rejected, try to find other positions in Dow Corning for employees, it said. Dow Corning filed for Chapter 11 protection from its creditors in May 1995 after thousands of women sued over health problems related to its silicone-gel breast implants. Dow shares rose 56 cents to close at $29.31, while Corning fell $10.63 to close at $275.88, both on the NYSE.

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