Union Carbide will implement a series of actions to reduce costs by $250 million a year by 1994. The savings are expected to result from major reductions in plant fixed costs, functional support staffs at both the business and corporate group levels and in selling and administrative expenses; reductions in variable costs stemming from raw material efficiency improvements; reductions in interest costs; and divestiture of several smaller businesses not essential to the company's long-term strategy. The programs are expected to reduce the workforce from year-end 1990 levels by an estimated 5,500, including contractors and consultants. Of the 5,500, 3,700 are already accounted for by the earlier announced restructuring of the company's packaged gases business, by reduction of 800 positions at the company's Brazilian industrial gases affiliate, from the sale of a transformer servicing business and by other reductions throughout the corporation.
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|Title Annotation:||Business Briefs: Corporate, Financial News; cost cutting measures|
|Article Type:||Brief Article|
|Date:||Dec 1, 1991|
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