Cabot announces restructuring program including 300 layoffs worldwide

Cabot Corporation today announced a plan to restructure its operations with anticipated cost savings of approximately $50 million in fiscal 2016 as compared to fiscal 2015. As proposed, the plan would result in the reduction of approximately 300 positions globally and the savings are expected to begin in the second quarter of fiscal 2016.

Commenting on the restructuring plan in a company release, Cabot President and CEO Patrick Prevost, said, “Due to the challenging macroeconomic conditions facing our businesses, including lower oil prices, slowing demand in Asia and South America and less favorable foreign currency exchange rates, we are in need of adjusting our Company’s cost structure to improve our competitiveness. These are difficult decisions because we recognize they will impact our valued employees, their families and the communities where we operate.” The Company expects the restructuring plan, which is subject to local consultation requirements and processes in certain locations, to result in a pre-tax charge to earnings of approximately $35 million, mainly comprised of severance and employee benefits. Net cash outlays related to these actions are expected to be approximately $30 million, substantially all of which is expected to be paid during fiscal 2016.

Here is the full 8-K announcing the plan.