Cytec and Nova To Cut Staff

Because of the "unprecedented downturn in the global economy," Cytec Industries' new CEO, Shane D. Fleming, announced a restructuring plan that will lead to a loss of 600 jobs, about 10% of Cytec's headcount, in an effort to save $85 million by the end of 2009. As part of the measures, the firm plans to close its site in La Llagosta, Spain, and cut production of product lines in Drogenbos, Belgium, and Hamburg, Germany. Separately, Nova Chemicals CEO Jeffrey M. Lipton says "lousy" fourth-quarter results have induced his firm to cut 400 jobs, equivalent to about 15% of staff; Nova will also cut 200 contractor jobs. Because of the hard times, the firm is also asking its banks to loosen debt covenants and to provide additional financing.