Chemical firm Chemours cuts 5 percent of its global workforce

The Wilmington-based chemicals company, Chemours Co. announces that it is planning to reduce around 400 employees in the United States and overseas as the company is planning to reduce its overhead cost.

The new announcement means that the company will lay off almost 5 percent from its global workforce.

ABC News reported that the layoff will also be affecting 50 employees in the Wilmington area, the company headquarters.

According to a spokesperson, employee that will be laid-off includes a full-time employee and contractor's position.

Besides that, the company also announces that they will close down its production at its Reactive Metal Solutions plant located in Niagara Falls by the end of next year as the plant is not generating profits to the company. Around 200 workforces will be affected in the area alone.

According to a source, the company is expected to improve its pre-tax income by as much as $20 million annually starting in 2017 after the closure.

Chemours also announces that the company will complete all of its workers termination by the end of 2016 and all the restructuring will take effect systematically before the end of 2016.

The company has been recording a consecutive loss for two-quarter after it became an independent company. The company which was once part of the Dupont Co. recorded a total loss of $47 million for both quarter.

Its CEO, Mark Vergano, announces the layoff saying that "the actions announced today will allow us to focus our resources on our core business segments, operate more efficiently and strengthen our financial position."

According to the StreetInsider, Chemours Co. will incur a total cost of $45 million for compensation for the workers and other settlement.

All the cost will be reflected in the company's fourth quarter report. However, the company is expected to be able to save a total of $50 million annually through the workforce reduction.

The company also announces that it is currently going through its five-point transformation plan that will focus on five different aspects of the company. This includes structural cost reduction, growing the market, optimizing portfolio, investment, and improve the organization structure.

Chemours also announces that it will continue to improve its methylamines business through continuous support to its Belle manufacturing plant.