5,000 full-time jobs to be cut, 20 plants closed

Dow Chemical Co. said it would slash 5,000 full-time jobs -- about 11% of its workforce -- close 20 plants and sell several businesses to rein in costs amid the recession.

The company, one of the largest chemical makers in the world, expects the plan to save about $700 million a year by 2010. Dow, based in Midland, Mich., also will temporarily idle 180 plants and prune 6,000 contractors from its payroll.

Exactly which workers and plants will be affected is still being determined, a company spokesman said.

“We are accelerating the implementation of these measures as the current world economy has deteriorated sharply, and we must adjust ourselves to the severity of this downturn,” Chief Executive Andrew N. Liveris said.

Last month Dow Chemical said it would review all options to reduce costs and eliminate or defer capital spending. Dow’s actions follow those of rival DuPont Co., which said last week that it would cut 2,500 jobs and warned that it wouldn’t turn a profit in the fourth quarter because of a slowdown in the automotive and construction markets.

Like Dow, DuPont, of Wilmington, Del., is releasing 4,000 contractors, halting discretionary spending, slowing or stopping noncrucial projects and temporarily idling more than 100 manufacturing units. The yearlong restructuring plan will affect about 4,200 employees, or roughly 7% of DuPont’s workforce.