American specialty materials company, Momentive Performance Materials Inc. recently announced restructuring and cost-saving actions in response to the downturn caused by the current economic recession. The company has announced to reduce approximately 250 full time positions around the globe. This action, coupled with its prior restructuring efforts, planned attrition and retirements, represents approximately a 9% reduction in total employment from levels at the beginning of the year. Momentive expects to take restructuring charges of approximately US$15 mln in the fourth quarter of 2008 and the first quarter of 2009 related to the reduction in force.
For U.S. exempt salaried employees, Momentive will eliminate merit pay increases for 2009, suspending the company matching payments to the Momentive 401k Savings Plan and suspending the employee Tuition Refund Program. Momentive is also instituting similar cost-saving actions around the world.