The DuPont group has set out a $900m cost-cutting plan

The DuPont group has set out a $900m cost-cutting plan

DuPont is to eliminate 4,000 jobs in western Europe and North America as part of a $900m (E750m) cost-cutting plan. The company expected to make about 3,000 workers redundant, while 500 jobs will be lost “through normal attrition”. About 450 contractor positions will also be cut.

DuPont chief executive Chad Holliday said: “These are difficult, but necessary, decisions as we align our resources with market needs and adjust the size of our infrastructure following the anticipated separation of Invista.” The workforce reduction is expected to save around $325m (E271m) a year. DuPont is anticipating another $375m (E313m) saving in fixed costs by cutting spending on contract services, procurement, telecoms and IT.

A programme to simplify production lines and manufacture higher-value products, while saving energy and improving yields, is expected to result in a $200m (E167m) annual gain. DuPont said it will drive growth through better sales and marketing, and targeting its R&D spend. It will also focus on high-growth regions such as China, India, central and eastern Europe, and Brazil.

The plans do not affect the company’s Invista fibres business, whose sale to Koch Industries has been brought forward two months to 30 April. The sale price has also been reduced by $200m (E167m) to $4.2bn (E3.5bn).