Hexion Cuts Jobs To Reduce Costs

Hexion Specialty Chemicals said last week that as a result of its program to improve efficiency and cut annual costs by $250 million, it is laying off 20% of its workforce of roughly 6,800 employees. A company spokesman told C&EN that the layoffs began in the fourth quarter of last year and that a majority of dismissals will occur by the end of this year. Many of the layoffs are part of previously announced plant shutdowns such as the closure of a bisphenol A unit in Texas and four plants in the firm's coatings and ink raw materials segment. The layoffs also include the reduction of shifts and output at other plants. The Hexion spokesman added that the company had originally expected to lay off 15% of its total workforce as part of the program. The plan has so far netted $71 million in annual savings in 2009, with about $180 million more planned over the next 18 months.