The Chemours Company has announced three actions integral to its transformation plan, which was announced in August this year.
The company is cutting around 400 positions from its global workforce, representing approximately five per cent of its total employee and contractor base. The move is part of ongoing efforts to streamline and simplify the structure of the organisation worldwide and to reduce costs.
As a result of these actions, the company will incur a charge of approximately $45 million in the fourth quarter of 2015. The headcount reduction, expected to be completed during 2016, will affect business lines and functions and is estimated to save the company approximately $50 million annually.
In addition, the company has completed the strategic review of its Reactive Metals Solutions (RMS) business and decided to stop production at its Niagara Falls, NY site by the end of December 2016.
Chemours has also announced its continued commitment to the company’s Belle, W.Va. manufacturing location, which is the site of its methylamines business. The site will remain part of its Chemical Solutions portfolio and the company expects to take additional actions to improve its performance and financial contribution.
Mark Vergnano, Chemours president and ceo, said: “We continue to make significant progress executing against our five-point transformation plan by streamlining our portfolio and our organizational structure. The actions announced today will allow us to focus our resources on our core business segments, operate more efficiently, and strengthen our financial position.”
The Chemours five-point transformation plan that was announced early August 2015 is focused on five strategic elements: reducing structural costs, growing market positions, refocusing investments, optimising the portfolio, and enhancing the organisation.