Eastman Chemical Company (Kingsport, TN), which makes chemicals and other materials for coatings and related applications, announced a series of actions the company is taking in response to the current economic conditions. The company plans to reduce its costs in 2009 in excess of $100 million, with $80 million of that coming from labor-related costs.
A few of the actions planned include eliminating 2009 wage and salary increases, permanent change to the U.S. vacation policy on days carried over, eliminating overtime, reduced use of contractors and part-time labor, and reducing management staff.
The reduction in management staff was recently completed and will result in a restructuring charge of $5 million during the fourth quarter. The company’s locations outside of the U.S. are taking similar actions to reduce labor costs.