DuPont to cut work force, close plants

DuPont has announced plans to cut 4,000 jobs, or about 4% of its globalwork force, as well as reduce contract personnel by 1,200. It is also planning to close "less competitive manufacturing assets," with half of the job cuts coming from DuPont's nylon and polyester fiber businesses. The firm said it will take a one-time charge in the second quarter of $0.40-$0.45 per share as a result of the action. The expected annual pretax payroll savings will be about $400 million.

Chief executive Charles Holliday said the company has taken these measures "to more rapidly achieve our goal of sustainable growth." This goal would no longer appear to involve health care, as the firm is willing to divest DuPont Pharmaceuticals, and a number of drugmakers, notably Novartis and Bayer, have expressed an interest in the business (Marketletters March 26 and April 2).