Dow to cut jobs as profits squeezed

Chemical and plastics giant Dow Chemical Co. has announced plans, including the elimination of jobs and sales of assets, in reaction to a poor financial results in the fourth quarter of 2002. According to press reports, Dow plans to slash between 3,000 and 4,000 jobs this year, as well as sell or trade $1.5 billion in holdings.
Midland, MI-based Dow said that for the quarter ending Dec. 31, the company lost US$809 million. Revenue rose 9% to $6.91 billion in the final three quarters of 2002 from $6.35 billion in the last three quarters of 2002. Dow says a 35% increase in energy/feedstock costs, however, ate up all and more of these additional revenues.
At the end of 2002, Dow reported 50,000 employees, including about 2,000 employees in Canada at eight manufacturing facilities. The company did not specify how many of the job cuts would occur in Canada.