DTI eliminates over 2,000 jobs
Textiles unit expects to save $120M with cuts
By Marvin Lazaro -- Home Textiles Today, 5/6/2002 12:00:00 AM
WILMINGTON, DE —
Looking to reduce costs, DuPont Textiles & Interiors (DTI) last week announced that it will cut more than 10 percent of its global workforce, better than 2,000 employees.
DTI, a division of the DuPont chemical company, expects the cuts to save about $120 million. The majority of the reductions, more than two-thirds, will occur in manufacturing facilities and offices in the United States, with most of the balance taking place in Europe.
Dupont plans to shutter its terathane PTMEG manufacturing unit at Niagara Falls, NY, as well as less competitive portions of the spandex operation at Waynesboro, VA. The plans call for more than half of the affected employees to leave DuPont by July 31.
DuPont previously announced its plans to create DTI as a new wholly owned subsidiary and separate it from DuPont by yearend 2003, market conditions permitting. The company is evaluating a range of separation options, including an Initial Public Offering.
"These are difficult but necessary actions to position DTI for success in a highly competitive and rapidly consolidating industry," said Richard Goodmanson, DuPont executive vp and coo and the leader of DTI.
Goodmanson cited the rapidly worsening textiles situation in the United States, specifically the Chapter 11 filings of Guilford Mills and Thomaston Mills, among others, within the last year, as the precursors to DTI's decision to reduce its workforce.
U.S. employees who are leaving will receive a severance package providing them with career transition payments based on length of service, as well as a range of health and dental benefits and educational assistance.
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