Eastman takes actions to reduce costs by an additional $100 million
March 9, 2009
Eastman Chemical Company announced it is taking additional actions to further reduce costs by more than $100 million in response to the ongoing global economic recession. These actions, in addition to those announced in December, increase Eastman’s expected total cost savings in 2009 to more than $200 million. To implement these savings Eastman is reducing base pay for U.S. employees by 5 percent effective March 30, 2009, with equivalent cost reductions in bargaining unit sites and locations outside the U.S. They are also implementing a global targeted reduction in work force of between 200-300 employees within the next 4-6 weeks. They plan to reduce non-critical maintenance costs, logistics costs and discretionary spending. In addition to taking actions to reduce costs, the company lowered its budgeted 2009 capital expenditures to between $300 and $350 million. The company also expects to generate approximately $100 million of cash from working capital in 2009, assuming continued difficult economic conditions and raw material and energy costs similar to current levels.