May 1, 2001 – Detroit, Michigan – Dow Chemical plans to cut 4,500 jobs (8% of its work force), which is double its earlier job-reduction estimate. The company said it plans to cut annual costs by $1.1 billion by early 2003, more than double its $500 million projection when the takeover of Union Carbide was announced in 1999.
Dow has previously said that it was cutting 4% of its work force due to cost savings found through the acquisition, including the reduction of overlapping responsibilities. The $7.3 billion deal was completed on February 6.
“Achieving these synergies will be critical to ensure that this merger creates long term value for all our stakeholders,” said Michael Parker, president and CEO, in a recent release. “As we accelerate our aggressive pursuit of both cost and growth synergies, we will create greater value than either Dow or Union Carbide could have realized separately.”