KINGSPORT, Tenn. (AP) -- Eastman Chemical Co. on Wednesday said it will slash costs by more than $100 million in 2009, mostly by cutting jobs, in response to the current economic turmoil.
The chemical producer said at least $80 million of cost reductions would come from labor, including a reduction in contractors, part-time labor, management and the maximum vacation carry-over amount. The company also plans to eliminate planned wage and salary increases as well as overtime when possible.
Eastman Chemical said its management staff cut, which was recently completed, will result in a restructuring charge of approximately $5 million during the fourth quarter. The other actions being taken will not result in restructuring charges, the company said.
Shares of Eastman Chemical closed at $31.20 on Tuesday.