Cabot To Cut About 300 Jobs Globally

(RTTNews) - Cabot Corp. (CBT) announced that it plans to restructure its operations with anticipated cost savings of approximately $50 million in fiscal 2016 as compared to fiscal 2015. 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.

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.

According to the company, the restructuring plan will contribute to our stated target of delivering an improvement of $0.75 of adjusted earnings per share in fiscal 2016 as compared to fiscal 2015. In addition to the restructuring, the company is focused on operational, technological and commercial actions to maintain and extend its global business and technology leadership positions.