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...
Dow + DuPont merger = -10,000 well paying jobs and +25,000 waiters— zerohedge (@zerohedge) December 9, 2015
... 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."