Eastman Chemical Cuts Costs Again

Eastman Chemical plans to cut $100 million from its annual expenses, adding to a plan outlined three months ago that also aimed to cut expenses by $100 million. In the new round, Eastman will eliminate up to 300 jobs globally, about 3% of its workforce, within the next six weeks. The company also plans to cut employee salaries by about 5%. Capital expenditures budgeted for 2009 at $375 million—already 40% below the 2008 level—will instead come in between $300 million and $350 million, Eastman says. To account for the actions, the firm plans to take a $30 million charge against first-quarter earnings.