Processing Magazine

Eastman Chemical offers early retirement in hopes of trimming 200 from its work force

December 19, 2006

Eastman Chemical Co. recently offered early retirement incentives to mostly white-collar employees in Tennessee, Texas and Pennsylvania, hoping to trim 200 to 250 people from its domestic work force, the Associated Press reports. About 1,400 domestic employees are eligible, based on their age and length of service, at Eastman headquarters in Kingsport; Longview, Texas; and West Elizabeth, Penn., near Pittsburgh. Some 7,500 of Eastman''s 12,000 employees worldwide are in Kingsport. Workers will have from Dec. 18 to Jan. 17 to apply, and their retirement would take effect in February to March. The goal is to offset a 10 percent drop in revenue from the recently announced sales of its specialty organic chemicals operation in Arkansas and its polyethylene business in Texas. Eastman Chemical expects to receive $300 million from those sales, closing in the fourth quarter this year.