Dow of tomorrow means job cuts today

Dow Chemical today announced that it would shed 5,000 full time jobs, and take a raft of other cost cutting measures, as it accelerates its transformational strategy to reflect current economic conditions. Dow is a diversified chemical company delivering a broad range of products and services to customers in around 160 countries, including fresh water, food and pharmaceuticals to paints, packaging and personal care products.┬á┬á With annual sales of $54 billion and 46,000 employees worldwide, the job cuts represent roughly 11 percent of DowÔÇÖs global workforce. Dow said it would close 20 facilities in high-cost locations (although it did not specify where these would be), and also divest several non-strategic businesses, measures expected to result in annual operating cost savings of $700 million by 2010.┬á┬á  These saving are additional to the previously announced cost synergies of $800 million in the same timeframe for the anticipated Rohm and Haas acquisition.┬á┬á ÔÇ£Transformation, by definition, requires a commitment to working differently,ÔÇØ said Dow Chairman and CEO Andrew N. Liveris. ÔÇ£We are moving from a highly centralized and standardized approach, to operating three very different business models with a lean and efficient Corporate Center. TodayÔÇÖs restructuring is designed to support the Dow of Tomorrow.ÔÇØ ┬á┬á The new Dow business operating models will be: Joint Ventures/Asset Light; Performance Products; and Health & Agriculture, Advanced Materials and other Market Facing Businesses. Specific details on these business structures will not be released until early next year, however. ┬á