THE HAGUE, Netherlands (AP) -- Dutch chemicals maker DSM NV said Monday it is cutting 1,000 jobs -- 5 percent of its work force -- to help it weather the global financial storm.
The company also issued a profit warning saying operating profit for 2008 before one-time items will be euro900 million ($1.2 billion). In October, DSM said it expected full-year profit to be euro1 billion ($1.35 billion).
The company said in a statement Monday the staff cuts are aimed at saving euro100 million ($135.1 million) a year by 2010.
DSM makes a range of industrial chemicals and high-performance materials, as well as base chemicals for pharmaceutical companies and vitamin makers.
The company has been hit by slumping demand in the auto and construction industries.
"It is clear that the turmoil that began in the financial sector is now seriously hurting business and consumer confidence in the broader economy," said chief executive Feike Sijbesma.
DSM shares fell when the Amsterdam stock exchange opened but then climbed 3.7 percent to euro17.36 ($23.16) by the end of the morning. The broader Dutch AEX index rose 1.24 percent.