By Jessica Domel
Multimedia Reporter
To save about $3 billion, newly-merged DowDuPont plans to reduce some of its global workforce and consolidate some facilities and buildings while shuttering others.
In its third quarter report released Thursday, the company announced the plan to integrate the organization post-merger and “create strong foundations for the three intended companies.”
The announcement did not specify where the cuts will come from or which facilities will be closed.
DowDuPont also announced this week a $4 billion share repurchase program with no expiration date and a fourth quarter dividend of 38 cents per share.
“Rewarding our owners over both the near- and long-term has been a top priority for both legacy companies, and it remains so for DowDuPont,” Andrew Liveris, executive chairman of DowDuPont, said. “The board considered many factors in making these decisions, following an approach that delivers benefits to both heritage Dow and DuPont shareholders.”
DowDuPont successfully merged Sept. 1.
Two weeks later, the company announced changes to its plan to split into three specialized, independent companies.
The three companies will focus on materials science, agriculture and specialty products.
Plans call for the agricultural company to combine DuPont Pioneer, DuPont Crop Protection and Dow AgroSciences.
The materials science company will maintain the Dow brand and will focus on performance materials and coatings, industrial intermediates and infrastructure and packaging and specialty plastics.
The specialty products company will include: adhesives and fluids platforms, building solutions, water and process solutions, pharma and food solutions and microbial control, all from Dow; and DuPont’s Performance polymers.
Dow’s Corning will be split between the materials science and the specialty divisions.
DowDuPont originally called for a split into the three companies within 18 months of the merger, but Ed Breen, chief executive officer of DowDuPont, told Bloomberg it will likely take until August 2019.