December 01, 2015
Chemours, a spin-off company of DuPont, plans to cut costs by firing around 5 percent of its workforce and closing a production plant that has been operating since the 1890s.
The Wilmington-based firm announced the job losses on Monday in a press release entitled "The Chemours Company Announces Next Steps in Transformation Plan."
Around 400 people would lose their jobs in 2016, saving the company $50 million a year. Approximately 50 of those job losses will be in the Wilmington area, according to The Associated Press.
The majority of job losses will come from New York, where the company plans to shut down a reactive metals facility in Niagara Falls that has around 200 employees and contractors. The plant started producing sodium in 1896, according to the Chemours website.
CEO Mark Vergano said in a statement that the cost-cutting measures will allow the company to "focus our resources on our core business segments, operate more efficiently and strengthen our financial position."
He added: "I want to express my sincere thanks to all the employees who are affected by today's announcement for their contributions to Chemours."
While the move saves money in the long run, the company expects that it will have to pay around $45 million in the fourth quarter of 2015 for employee-related charges and removal costs.
Chemours employs around 8,400 employees and manufactures chemicals used in numerous applications such as plastics, refrigeration and industrial manufacturing. Its best-known product is Teflon non-stick coating.
