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Dutch company DSM to cut 900 to 1,100 jobs

Xinhua, August 26, 2015 Adjust font size:

Dutch multinational life and material sciences company DSM announced on Tuesday that it would cut 900-1100 full time jobs which will result in savings of 125 to 150 million euros (144 to 173 million U.S. dollars).

Approximately half of the cuts will happen in the Netherlands and will be fully implemented by the end of 2017. One-off restructuring charges, including severance costs, are estimated at 150-175 million euros before tax.

DSM plans a reduction in size of the support functions, on finance, HR, legal, IT, business services, indirect sourcing, communications and corporate departments as well as the regional centers. In addition, DSM will implement efficiency measures and a change in its management structure by establishing an executive committee.

"In an increasingly global and fast-paced business environment we need to adapt our organizational and operating model to service our customers even better," Feike Sijbesma, CEO of DSM, commented in a press release.

"With the adjustments announced today, we become more agile, focused and cost-efficient," he added. "Businesses fully focus on growth, while at the same time we become more competitive by leveraging our global support functions."

DSM is a global life sciences and materials sciences company active in health, nutrition and materials with around 20,700 employees.

An the beginning of this month DSM published its results for the second quarter of 2015 with net sales of 1.965 billion euros, a 12 percent increase versus Q2 2014. In addition, DSM delivered a 6 percent higher EBITDA of 279 million euros, compared to 264 million euros in Q2 2014. Endit