Union Carbide Will Cut 14.5% Of Work Force --- Pretax Charge Will Total At Least $100 Million; Chemical Prices a Factor
DANBURY, Conn. -- Union Carbide Corp. said it is slashing its work force 14.5%, or 5,500 employees, over the next three years and plans to take a fourth-quarter pretax charge of $100 million to $150 million. The chemical industry faces weak prices and sluggish demand.</br></br>Robert D. Kennedy, Union Carbide chairman and chief executive officer, said in a statement that the personnel cuts and other steps announced are aimed at boosting annual pretax earnings by $250 million by 1994. A Carbide spokesman said some of the staff cuts have already taken place and others will continue until year end 1994.</br></br>Mr. Kennedy said salaries of senior officers would be temporarily frozen. The variable compensation of mid-level and senior managers will be "sharply reduced," compared with recent years, to reflect lower profits as well, Mr. Kennedy said.</br></br>At the end of last year Union Carbide had 37,756 employees world-wide.</br></br>The announcement, made shortly before the close of trading on the New York Stock Exchange, helped boost the company's stock price; it was quoted at $22.375, up 50 cents, in late trading.