Eastman Chemical outlines cost-reduction actions for 2009

20-Dec-08

Eastman Chemical Company announced a series of actions to be taken to respond to current economic conditions while continuing to pursue its plans for growth. The company said that it will reduce costs in 2009 in excess of US$100 mln, 80% of which is expected to come from labor-related costs. By the start of 2009, the company is planning reduction in management staff, contractors and part-time labour. Also, the wage, salary increments along with the overtime payments for the coming year will be eliminated and maximum vacation carry-over amount will be reduced for its U.S. operations. The company's locations outside the U.S. are taking similar actions to reduce labor costs. In addition, the company announced it is taking actions to reduce non-labor costs, working capital and capital spending.