Dow Chemical enacts job cuts per the Dow Corning deal

Dow Chemical Co is laying off 2,500 employees -- which is 4% of its total workforce -- as part of its takeover of Dow Corning.

“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,” said Andrew Liveris, Dow’s chairman and CEO. “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.”

Dow Corning was previously a joint venture between Dow Chemical Co and Corning Inc. In December, Dow Chemical announced its plans to assume full control of Dow Corning, as well as merge with DuPont.

In addition to the layoffs, the company is also shutting down silicones manufacturing facilities in Greensboro, North Carolina, and Yamakita, Japan, as well as certain administrative, corporate and manufacturing facilities.

These actions will help the company achieve its cost synergy target run rate of 70% with 12 months of the transaction closing, and 100% within 24 months.

The company said it was positioned to capture $500 million in run rate annual synergies owing to the restructured ownership, including $400 million in cost synergies and $100 million in growth synergies.