Dear Delaware-based Colleagues:
DuPont has called Delaware home for more than 213 years. The company has created countless scientific discoveries and built leading businesses, and we can be proud of the major social and economic impact DuPont has had in the State. However, as we face a pivotal time unlike any other in our company's history, we have begun a necessary journey down a new path to a stable and secure future for DuPont.
The planned merger with Dow and intended creation of three strong, independent companies-coupled with our own 2016 cost reduction program-has created concerns about our future in Delaware. I want to reinforce that these decisions were made only after careful and serious deliberation, taking into account every possible alternative, including continuing on our previous path. In the end, the Board of Directors and I unanimously agreed that this is the best path to a better, sustainable future for DuPont.
The first step is the $700 million cost reduction and associated restructuring we announced on December 11th. While this program is being implemented globally, I want to be straightforward with you about the impact on our local workforce. The effect in Delaware will be significant, reflecting the urgent need to restructure our cost base and, as part of that effort, reduce our corporate overhead costs so that we can remain competitive. The change also reflects the impact of our efforts to move corporate functions into the businesses, closer to our customers.
Especially given that we are in the middle of the holidays, we would have preferred to wait until individual notifications were complete before reporting the full local impact. However, by December 31st, we are legally required to file a notice with the Delaware State government detailing the expected local job reductions, and I wanted you to hear the difficult news-directly from me-that approximately 1,700 Delaware-based positions will be eliminated in the beginning of the year.
I am deeply aware that these decisions affect the lives - and families - of many people. As we work through these notifications, we are committed to doing so in a way that is consistent with our Core Values. We will honor each colleague's service to the company by providing separation packages, career placement services and training allowances as part of our effort to help our team members through these transitions.
Along with this sobering news of our Wilmington-area reductions, we fortunately are also able to announce that the corporate headquarters for the combined, post-merger Specialty Products business will remain in Wilmington, Delaware. Specialty Products will be a technology driven innovative leader, focused on unique businesses that share similar investment characteristics and specialty market focus. The businesses will include DuPont's Nutrition & Health, Industrial Biosciences, Safety & Protection and Electronics & Communications, as well as the Dow Electronic Materials business. Together, their complementary offerings create a new global leader in Electronics Products, and each business will benefit from more targeted investment in their productive technology development and innovation capabilities. Our leadership in these key areas will be the foundation for further growth - in the world, and in Delaware.
We have much more work to do with the three independent companies we intend to establish, including selecting the corporate headquarter location for our Agriculture business. I look forward to updating you on our selection progress in the months ahead.
DuPont has evolved many times over the past two centuries. In each era, our leaders recognized that change was inevitable to remain successful. By building our strength through the merger of equals with Dow and focusing our businesses to compete more effectively, we will enhance our ability to invest in the future. Each business will be able to create the value-added solutions its customers expect through targeted, highly productive investments in science and R&D.
I recognize this is a lot of change in a short time and in the New Year you will hear much more from me personally and from the leadership team regarding our strategic direction. As we go forward, we need to stay focused on our Core Values, ensuring the company is as strong as it can be for an increasingly competitive future. I believe we will build on our history and create a new phase of progress and opportunity for DuPont.
Sincerely,
Ed Breen
Posted 12-29-15
5:45 PM
24 comments:
Wow...I understand tough decisions need to be made but there is no local upside for our people or economy. Very sad...
DuPont and Delaware have been synonymous. This is going to have a lingering economic downfall on the Eastern Shore, but likely more more mid shore and up. What a sad time for families who need those jobs.
Even Delaware is effected by the International competition.
Most all fortune 500 firms located in the US are considering a move outside US boundaries because of the Socialist culture. It has slowly crept into the US - and it began when the great wall came down.
What people do not realize - is that when the Great Wall in Berlin came down - instead of capitalism going East - Socialism came West. The shear numbers of businesses exiting the US is staggering and can no longer be ignored.
Now are you still Glad you voted Democrat?
Thank you Biden. After 36 years of idiots voting you to Congress you run for VP and become the scrapping kid from Scranton. In your wake Delaware lost GM,CHRYSLER, MBNA,and now DUPONT. Yet we will still have idiots in Delaware still voting democrat. THE FIRST STATE OF MORONS!!!!!
Shows the effect of omnipotent complacency. In 1968 I was given a copy of the book of the duPont Story - the first 150 years and told that book tells why they don't need innovative, creative, new procedures; they had built a company over 150 years that, on momentum alone, could survive another 150 without changes to the basic operation procedures.
So much for resting on ones laurels. Maybe now changes will light up some fire in those remaining and rid the company of that complacency.
9:18 makes the most sense. Period.
8:49. The "Great Wall" is in China. The Berlin Wall separated Communist East Berlin from the Democratic West Berlin. No Socialism involved there.
And within a year or so, they'll proudly announce the opening of a new plant in some third world country.
Some kid made fun of one of the DuPont's kids in prep school --- ""Ha! Your family is so poor, you couldn't even bid on that 28 room Aspen ski lodge!! OUR dad bought it!!"
When your family is down to it's last 10 billion dollars, its time to lay off some middle class workers, move some plants to Mexico, and regain your pride.
Keep cheering.
6:46 yes and the reason for that is that the corporate tax structure is huge in the US. it makes no sense to run a company in this country. as long as the rate is high nothing will change
6:46. Both Dow and DuPont already have hundreds of plants all over the world. Including many 3rd world countries.
America is lost due to the almighty dollar,we only care about money and that is a fact.Children are starving,jobs are being lost and when a plant does move to other countries we will buy the products they make and will complain.but do nothing to stop it .All we worry about is race,race , and more race issues.Stupid Americans are being played and the elite laugh in all races face.
The Democrats want to kill every industry in America and then claim Capitalism doesn't work and enslave the people in Communism.
10:06. Then why have the greatest periods of economic growth in this country in the past 30 years happened under Democratic administrations?
Good clarification 11:59. Amazing how many posts show a profound unawareness of geography,history, economics, and politics.
@ 6:45
But as soon as they do open that plant in the third world maybe stories of the Bhopal incident will resurface and they will reconsider allowing a company to cut corners just because it is cost beneficial.
10:46.....Missed including Jimmy Carter's administration by that much, huh?
And does Obama's admin get any credit for fake employment numbers, Friday night press releases, "amendments" to the labor figures (done ALL THE TIME), stalled/stagnant economic growth, industrial production numbers (faked when needed), GNP figures, you name it, obama lies, obstructs, obscures, and fudges numbers to the point where even his supporters say "WTF?".
You can't make up history and then post it as fact to make a false claim seem true.
Democrats run things so well? Explain the cities across the nation, run by Democrats, that can't even maintain the street lights because they are so f'ing BROKE.
Now hurry up and pay that ever increasing obamacare premium that your democrat gods promised would GO DOWN and we would SAVE $2500 a year.
Keep cheering (you seem especially adept)!
12:57. Do some real research.
313, maybe you need to do the research. Imclain speaks from factual history.
What do you have?
12:57....Seems like you think you've got the facts.
Point out my errors.
I'll wait.
I LOVE it when you anonymous lemming cheerleaders don't like what I say, but instead of refuting me with facts and logic, you resort to what all losers do -- insult and insinuate errors. You just can't come up with the real deal. What was your answer about the sorry state of democrat run cities? Oh. Right. You don't have one.
There is only one version of the truth. Running from it doesn't change it. Making fun of it doesn't work very well, either.
Get back to cheering. Wipe your mouth off first.
I believe 8:59 Poster hit the nail on the head. When the Berlin Wall came down it seems as though all hell broke loose with the spread of Socialism/Communism. Just look at what has happened in the US with the exodus of businesses. Plain and simple - the US doesn't make anything anymore. The manufacturing has vanished - (Steel, Plywood, Circuit Boards, Shoes, Textiles, Tools, etc).
Delaware will be forced to consider the implementation of a sales tax now.
Sooner or later Delaware will shut down and no one will be allowed in or out.
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