In order to face the severe decline in demand and tide over the economic downturn, PolyOne Corporation will curtail workforce by 370 jobs worldwide (8% of total workforce), and further reduce work schedules for another 100 to 300 employees, closing its Niagara, Ontario facility and idling certain other capacity. Additionally, the Company is planning other actions that include freezing executive salaries throughout 2009. PolyOne is expected to complete these actions by March 2009.
PolyOne expects to incur one-time pre-tax charges of approximately US$45 mln related to these actions, of which approximately US$22 mln will be recorded during the Q4 - 2008. As per company release, these actions are expected deliver pre-tax savings of approximately US$25 to US$30 mln in 2009 and approximately US$40 mln on an annualized run-rate basis. The release said its specialization strategy allowed it to increase sales in growth markets such as healthcare and consumer goods, demand in cyclical end markets such as housing and automotive has weakened considerably over the last year.