In a bid to offset the current sales volume and margin weakness, LyondellBasell plans to cut 3,000 jobs, about 17% of its workers and reduce expenses by an additional US$500 mln by 2010. LyondellBasell is the world's third-largest petrochemical company whose US operations are under bankruptcy protection. The company also plans to reduce its contract workers by 30%, or 2,000, and close 10 plants and 20 offices.
Last year, the company took on billions of dollars in debt obligations when billionaire Len Blavatnik led a US$12.7 bln leveraged buyout of US firm Lyondell by Basell. The resultant massive debt load coupled with declining demand triggered by the global economic meltdown prompted Lyondell to seek protection from its creditors in January.