Dow CEO Explains To Cramer The Reasons Behind Laying Off 3 Percent Of The Company's Workforce

Loading...
Loading...

Dow Chemical Co DOW announced on Monday that it will be cutting 3 percent of its global workforce as it prepares itself to merge most of its chlorine business with Olin Corporation OLN.

 

Andrew Liveris, Dow Chemical Company CEO, was on CNBC's show 'Mad Money' recently to discuss with Jim Cramer the layoffs and Dow’s Europe business.

 

Agility

 

“Productivity is a journey not a destination. Less is more, being more agile,” Liveris said. “We had the opportunity with the Olin transaction to look at our [stranded] costs with our new IT system we installed last year. We are a technology driven company, advanced analytics, better data from the customer, trying to be streamlined is a never ending journey.”

 

He continued, “So, today’s announcement is an example of creating an agile, more market-driven Dow with less cost structures and more investment, where the investment should be at the market price with customers.”

 

Better Than Before

 

Cramer mentioned that Liveris has off-late been bullish on Europe for Dow Chemicals and asked him the reasons for his bullishness. He replied, “Germany is definitely benefitting from this recalibration of currency and Germany is an export machine and clearly it has to be export markets, but if you become lower costs in dollar terms.”

 

“I mean, that’s a really good thing and so that’s what you are seeing out of Germany and underlying demand in Germany is there and I think if Germany is looking good and Northern Europe is starting to look good, there is the beginning of let’s call it a 1-1.5 percent economy, which is better than what we have had,” Liveris concluded. 

Loading...
Loading...
Posted In: CNBCMedia
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...