Ecolab Undertakes Restructuring Plan

Cleaning and sanitation products maker Ecolab has outlined a restructuring plan that includes $480 million in charges against earnings as well as the elimination of 500 jobs. The move follows Ecolab’s $8.1 billion acquisition last year of water treatment firm Nalco Holding. The job cuts, to be phased in over the next two years, will largely affect corporate positions, sparing sales and R&D jobs. The combined firm now has about 1,300 R&D employees. The charges will also cover closure of redundant plants, distribution centers, and sales offices, leading to annual cost savings of $250 million by 2014. Ecolab predicted $150 million in annual savings when it announced the merger last July.