Eastman announces job cuts, pay reductions... (Kingsport: job outlook, closing, maintenance)

[kamoshika]

Kingsport has weathered the economic storm relatively well, but no city is an economic island. I believe the pay cuts will have a pretty big ripple effect on local retail sales.

Eastman Chemical Company today announced it is taking additional actions to further reduce costs by more than $100 million in response to the ongoing global economic recession. These actions, in addition to those announced in December, increase Eastman’s expected total cost savings in 2009 to more than $200 million. Eastman is taking the following actions to achieve these savings:

* Reducing base pay for U.S. employees by 5 percent effective March 30, 2009, with equivalent cost reductions in bargaining unit sites and locations outside the U.S.
* Implementing a global targeted reduction in force of between 200-300 employees within the next 4-6 weeks
* Reducing non-critical maintenance costs
* Reducing logistics costs
* Further reducing discretionary spending
Eastman - Eastman Takes Actions to Reduce Costs by an Additional $100 Million (http://www.eastman.com/Company/News_Center/News_Archive/2009/English/Corporate_News/Financial_News/090309.htm - broken link)

[blindsolitude]

My boyfriend's dad works for Eastman. He told me a month or 2 ago that he was bracing for a pay cut, but that is better than being laid off. It shouldn't have a big impact on him since he saves/saved SO much money (I could learn a lot from him regarding penny pinching).

It still sucks, though.

[gsp4ever]

I guess a 5% pay cut is better than no job at all, but that is still a pretty significant reduction. Also, I noticed the job cuts were considered to be a "global targeted reduction" so I'm wondering how many of those will be in Kingsport?

[rccrain]

7k of eastman's 10k employees are based in Kpt, so if that ratio holds consistent, we're looking at 140 to 210 job losses.

Hopefully these are very temporary layoffs as EMN seems to bee doing OK financially. Strategically, this is a good time to "restructure" because there is a "good" excuse to let people go.

[Beretta]

My prediction: this is only the beginning. With Ferguson's departure and the new guy (from what I understand no stranger to slashing) in place more changes will be coming is my 2 cents.

[gsp4ever]

Well, if there are going to be job cuts at the Kingsport location, either now or in the future, does anyone think that these jobs will be very difficult to replace? My perception was always that Eastman seemed to pay a bit better than most Tri-Cities employers.

[mbmouse]

Not that I want to see anyone to lose their job but I am hopping they are cutting the majority of those jobs by maybe closing the smaller satellite offices verses all 200-300 cut from Kingsport.
Yes, Eastman does pay well, but the vast majority of employees are Chemical Engineers and it has always been very hard to get a job there. Very little employee turn over from what I understand as well.

[RachelKay]

Ugh, I'm finishing up a degree in chemical engineering and Eastman was definitely at the top of my future-job list. Wah.

[blindsolitude]

Originally Posted by mbmouse

Very little employee turn over from what I understand as well.

My boyfriend's dad has been there FOREVER. In fact, I'm not sure if he's worked anywhere else.

[JenninJC]

My husband has been "hired" there in operations, but does not have a start date because he has to wait for someone to leave/retire. He had his final interview in August 2008 and we're still waiting... so I wonder how this will affect his job outlook I'm sorry people are losing their jobs, that is never good!