The "Synergies" Arrive: Dow Fires 2,500

Tyler Durden's picture

The Dow Chemical Company announced on June 1 that it had completed the transaction with Corning Inc,. which allowed Dow Chemical to take full control of Dow Corning, a joint venture the two companies entered into years earlier.

Today, less than a month later, the "synergies" which we previewed last December...

... have begun.

This morning it hit the wires that cost-synergies would be achieved through a global RIF, or reduction in force (another of Wall Street's favorite acronyms) of approximately 2,500 jobs, or 4% of the workforce according to Bloomberg. Dow will take a charge of approximately $410 million to $460 million in Q2 2016 relating to the measures. The June 1 announcement claimed that $400 million a year in cost savings would be achieved by the restructuring actions.

Dow plans to shut down manufacturing facilities in Greensboro, North Carolina, and Yamakita, Japan, as well as other facilities throughout the process.

"We are moving quickly and effectively to integrate Dow Corning and deliver the synergies that will drive new levels of value creation for our customers and generate even greater returns for our shareholders. With these difficult but necessary actions, we are bringing together the best of each company's talent and technology, accelerating Dow's strategy to go narrower and deeper into attractive, targeted market sectors, and setting the stage for the new Dow - the world's leading material science company" CEO Andrew Liveris said.

More layoffs, more cash for buybacks - that is the theme of the "recovery."

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Cognitive Dissonance's picture

We don't need no stinkin' little people. Or at least 2,500 less.

<If everything is coming up roses, why are so many people being fired worldwide?>

 

"Dow will take a charge of approximately $410 million to $460 million in Q2 2016 relating to the measures."

Don't you just love those one time charges which can backed out of reported earnings to make the numbers look better than they are?

BorisTheBlade's picture

Layoffs will continue until bottomline improves.

Supernova Born's picture

How many 747's from India filled with H-1B's, their families and their grandparents is that?

 

wildbad's picture

they've certainly got this covered with an algo..no worries

Calculus99's picture

The US loves an acronym, especially the military.

Why use code, who's going to understand something like -

The DOA reports to the NIFF when on standy using the GHT assuming the BIT allows the implimemtation of the OIO but only if the YUY takes control of the FATI and then diverges with the WAMY. So says the POTUS.

RawPawg's picture

going long beer coasters,and beer nuts

items needed for the new bar openings

booboo's picture

Better serve the cheap shit. Do you know how to make bathtub gin?

Calculus99's picture

Raw capitalism can be ugly/evil. A good example is when a stock gets a massive boost in price on the back of massive RIFs.

 

Richard Chesler's picture

Excellent news for Obamacare.

 

Cautiously Pessimistic's picture

Ah.... I love the smell of FICTION getting PEDDLED in the morning.  Good times!  Good times I tell ya....

Hubbs's picture

Now that news of the Brexit is old, the economic news can pick up where it left off.

nmewn's picture

Moar synergies on the public dole should put .gov's official unemployment rate at say...1%  ;-)

undercover brother's picture

In the corporate world, synergies = cost cutting through strategic reduction of redundancies, which = less people doing more work for the same pay.   Good for the business, shareholders the and stock price, bad for the people.    

MFL8240's picture

BRXIST fault right?  Not Obama, we blame the UK.

Nexus789's picture

I thought it was Putin.

chunga's picture

I blame minimum wage hikes and millenials.

Arnold's picture

Chinks or Norks?

Always the bottom line.

Catullus's picture

Coming to a DuPont near you!

south40_dreams's picture

With unemployment at virtually zero finding another job shouldn't be a problem, snicker

Elco the Constitutionalist's picture
Elco the Constitutionalist (not verified) Jun 28, 2016 7:14 AM

Listen people! Multinational Corporations are not jobs programs for worthless peasants. They are financial vehicles for bankers. You bunch of useless welfare trash need to make your own jobs.

Mena Arkansas's picture

You've been synergized and possibly riffed.

But since it was you (and not me) what difference, at this point, does it make?

/s

EmeraldWI's picture

If you don't think you are a "consumer" of Dow Corning products because you didn't get silicone breast implants, you may be wrong. Their edible silicone grease for example, literally greases the wheels of the food factories of the world. Silicone, can't live with it; so Merrill Lynch dreams up a tax free way to lose $500 million in the first quarter on the hope of making it up in a few years and then when it doesn't quite happen double up on the layoffs.

williambanzai7's picture

This kind of transaction was perfected during the golden age of Clinton.

Obamarama's picture

If you want your job you can keep your job

JamaicaJim's picture

Well!

 

How.......shareholder-y this is!

HOW FUCKING DARE THEY CUT COSTS..........I..............

no wait....

IT'S ALL FICTION! THIS IS PEDDLING FICTION! FUCKBAMA SAID SO.............................what....?

 

Iconoclast421's picture

Yay more burbacks. Every $100 million in buybacks might cost 1000 real jobs, but hey it also creates 100 more waiter and bartender jobs so there is some benefit!

tarsubil's picture

"We are moving quickly and effectively to integrate Dow Corning and deliver the synergies that will drive new levels of value creation for our customers and generate even greater returns for our shareholders. With these difficult but necessary actions, we are bringing together the best of each company's talent and technology, accelerating Dow's strategy to go narrower and deeper into attractive, targeted market sectors, and setting the stage for the new Dow - the world's leading material science company" red-eyed CEO Andrew Liveris said while snorting coke off an escort's ass with a creepish grin.

FIFY

Max Cynical's picture

Well at least those affected will no longer be tethered to those jobs.

gr8t4ever's picture

should call it R I P instead of RIF

OilCaptain's picture

My prayers are for those who just lost their jobs.  God bless them during this challenging time.

GRDguy's picture

Just another example of the accuracy of the 1889 book "The Great Red Dragon" in that the goal of financial sociopaths "is to own the earth in fee-simple."  They create the money from nothing to buy physical corporations, then turn them into even bigger plantations.