Economy
Almost every day there is more news about how the chemical industry is faring during the global economic crisis. This archive is intended to help our readers stay current on the industry's responses to changing conditions. We would also like to hear from you - please let us know how this down cycle is affecting your workplace by e-mailing us at [webmaster.cen@acs.org.] On a related note, you may wish to go back and read the recent C&EN cover story Employment Outlook: Thinking Creatively About Work
This archive is not 100% comprehensive; rather it focuses on news and features from the fourth quarter of 2008 to the present. Our coverage of the crisis goes back much further. For example, the first inkling that the subprime mortgage crisis might affect the chemical industry came in mid-2007 when insiders began to express concern that a lack of credit might hamper deal making. (Read: Clouds Loom Over Deal Frenzy)
Economy Archives » 2011 & 2010 | 2009 | 2008
» Economy Articles
August 15, 2011
Earnings Survive Unstable Recovery
Chemical firms' second-quarter results show signs that demand is stagnating.
Pipeline Payoff Helps Pharma
Drug company first-half results were helped by new product launches and emerging-market sales.
Economic Woes Hit Chemical Makers
Finance: Observers fear the economic soft patch is looking more like another recession.
Layoffs Hit Argonne Lab
Federal Funding: Budget uncertainty forces staff cuts, fiscal review.
August 8, 2011
Business Slows In Europe
Chemicals: Second-quarter results are better than last year's, but firms see demand softening.
More Merck Job Cuts
Pharmaceuticals: Drug maker heralds a second round of layoffs despite strong second quarter.
July 25, 2011
Global Top 50
Chemical producers show surprisingly good profits soon after the recession.
June 20, 2011
An Industry Resurgent
Chemical executives at annual meeting revel in good times, stay wary on regulations.
Biotech Sector Rebounds
Pharmaceuticals: Recovery is occurring but growth is slow, dogged by a widening gap in access to capital.
June 13, 2011
New Cracker For Appalachia
Shell's proposed facility will reverse a petrochemicals exodus from the region.
May 16, 2011
Price Hikes Lift Chemical Profits
Higher prices and volumes yield strong first‑quarter earnings for chemical makers.
Big Pharma's Pipeline Promise
First-quarter results were steady, but drug companies see better times as new products approach commercialization
May 9, 2011
Top 50 U.S. Chemical Producers
With the recession behind it, U.S. chemical industry girds for growth.
Caveats Temper India's Promise
Chemical market grows strongly, but country remains a difficult place to do business.
May 2, 2011
Amgen's Outlook
The big biotech firm specifies how it will expand through 2015.
Pricing Boosts Chemical Earnings
First quarter: Strong demand helps firms stay far ahead of rising costs.
April 11, 2011
Petrochemicals Rise Again
Strong Asian growth has reinvigorated the global petrochemical industry.
March 7, 2011
Petrochemicals
Cheap raw materials and a muted industry downturn add up to good times for U.S. companies
Europe's Firms Back On Track
Chemical Earnings: Economic growth powers fourth-quarter rebound
February 28, 2011
Chemical Earnings Gain Steam
As the economy heats up, demand for chemicals spreads to all regions and sectors.
February 14, 2011
Building Innovation
After downsizing, Clariant looks to a new R&D center to help spur product development.
» Workforce At A Glance
CHEMICALS
Company Name: Hexion Specialty Chemicals
Date Announced: March 12, 2009
Jobs Cut: 1020 (15% global workforce)
Other info: Increased savings form productivity program to $100 million from earlier $60 million. Actions will occur over the next 12 to 18 months.
Company Name: Dow Chemical (Rohm and Haas)
Date Announced: March 10, 2009
Jobs Cut: 3,500
Other info: Positions cut primarily from Rohm and Haas, as part of acquisition by Dow Chemical.
Company Name: Eastman Chemical
Date Announced: March 9, 2009
Jobs Cut: 300 (3% of global workforce), and cutting salaries of non-union U.S. employees by 5%
Other info: The $100 million cost-saving effort is in addition an earlier plan, announced 3 months ago, to cut costs by $100 million.
Company Name: A. Schulman
Date Announced: March 2, 2009
Jobs Cut: 104
Other info: Will help company achieve annual savings of more than $5 million.
Company Name: Dow Corning
Date Announced: February 24, 2009
Jobs Cut: 800 (8%)
Other info: Workforce reduction will be through a combination of voluntary retirements and layoffs, and will not affect Hemlock Semiconductor.
Company Name: Rockwood Holdings
Date Announced: February 18, 2009
Jobs Cut: 893 (9%)
Other info: The company plans to save the firm $150 million annually.
Company Name: Rhodia
Date Announced: February 17, 2009
Jobs Cut: 28 temporary layoffs in Charleston, SC.
Other info: Company expects to call workers back in mid-March.
Company Name: Redpoint Bio
Date Announced: February 3, 2009
Jobs Cut: 12 (33%)
Other info: The company has hired Burrill & Co. to help it assess alternatives, including an acquisition or sale of the company.
Company Name: Sumitomo Chemical
Date Announced: February 3, 2009
Jobs Cut: 2,500 (10%)
Other info: The company forecasts it will post its first loss in more than 20 years in the fiscal year that ends on March 31.
Company Name: Cabot
Date Announced: January 28, 2009
Jobs Cut: 500 (12%)
Other info: Restructuring to save the company $80 million in 2010
Company Name: DuPont
Date Announced: January 27, 2009
Jobs Cut: 4,000 contractor positions (additional to announcements in Dec.)
Company Name: Ashland
Date Announced: January 27, 2009
Jobs Cut: 1,300 (9%), includes 500 positions eliminated through Dec.
Other info: Some cuts related to acquisition of Hercules
Company Name: Clariant
Date Announced: January 27, 2009
Jobs Cut: 1,000
Other info: Cuts are in addition to the approximately 2,200 headcount reduction announced in 2006 and almost completed by the end of 2008.
Company Name: Huntsman
Date Announced: January 22, 2009
Jobs Cut: 1175 positions by year-end (more than 9%) and 490 full-time contractors
Other info: Will close its titanium dioxide plant located in Grimsby, U.K.
Company Name: Rohm and Haas
Date Announced: January 20, 2009
Jobs Cut: 900 (5%)
Company Name: Nalco
Date Announced: January 16, 2009
Jobs Cut: 400
Company Name: PolyOne
Date Announced: January 15, 2009
Jobs Cut: 370 (8%)
Other info: Reducing work schedules of 100-300 employees, freeze on executive salaries.
Company Name: Nova Chemical
Date Announced: January 7, 2009
Jobs Cut: 400 (15%) Nova will also cut 200 contractor jobs.
Company Name: Cytec Industries
Date Announced: January 5, 2009
Jobs Cut: Estimated 600 (about 10%)
Other info: Most cuts would occur in the specialty chemicals product lines.
Company Name: Kraton
Date Announced: December 22, 2008
Jobs Cut: Not announced
Other info: Suspending production of some styrenic block co polymers at a number of its global production facilities, affecting approximately 50% of global capacity.
Company Name: Minerals Technologies
Date Announced: December 18, 2008
Jobs Cut: 340 or 12%
Company Name: LyondellBasell Industries
Date Announced: December 18, 2008
Jobs Cut: Not announced
Other info: Idling its Chocolate Bayou, Texas, olefins unit, which has 1.2 billion lb of ethylene capacity. Earlier idled its 1.7 billion-lb ethylene cracker in La Porte, Texas.
Company Name: Westlake Chemical
Date Announced: December 17, 2008
Jobs Cut: Not announced
Other info: Idling ethylene plant in Lake Charles, La. representing about half of its 2.5 billion lb per year of ethylene capacity
Company Name: Air Products & Chemicals
Date Announced: December 16, 2008
Jobs Cut: 1,300 (7%) positions cut
Other info: Target savings - $110 million beginning in 2010
Company Name: Momentive Performance Materials
Date Announced: December 16, 2008
Jobs Cut: 250 (9%) positions cut
Company Name: DSM
Date Announced: December 15, 2008
Jobs Cut: 1,000 (about 5%) positions cut
Other info: Target savings $140 million annually by 2010
Company Name: Arkema
Date Announced: December 15, 2008
Jobs Cut: Temporary shutdowns or production cutbacks at 40% of its plants worldwide
Other info: Fixed cost reduction programme of €500 million between 2005 and 2010
Company Name: Chemtura
Date Announced: December 11, 2008
Jobs Cut: About 500, (20% of its professional and administrative staff)
Other info: Aims to reduce fixed costs by approximately $50 million
Company Name: Eastman
Date Announced: December 9, 2008
Jobs Cut: 40 management positions
Other info: Aims to reduce costs in 2009 by more than $100 million, 80% from labor
Company Name: Dow
Date Announced: December 8, 2008
Jobs Cut: 5,000 (about 11%) positions cut
Other info: To save the company $700 million in annual operating costs by 2010
Company Name: DuPont
Date Announced: December 4, 2008
Jobs Cut: 2,500 positions cut, primarily in businesses that support the motor vehicle and construction industries
Company Name: Symyx Technologies
Date Announced: December 3, 2008
Jobs Cut: 90 (15%) positions cut
Other info: Aims to reduce 2009 expenses by $15 million compared with 2008
Company Name: BASF
Date Announced: November 19, 2008
Jobs Cut: 20000 positions cut
Other info: Temporarily shutting down 80 plants worldwide and slashing production at an additional 100 plants
» Workforce At A Glance
PHARMACEUTICALS
Company Name: Elan Pharmaceuticals
Date Announced: February 25, 2009
Jobs Cut: 230 (14%)
Other info: The cuts, about half in Ireland and half in the U.S., will be in the firm's biopharmaceutical business, which is postponing some manufacturing activities.
Company Name: Novogen
Date Announced: February 13, 2009
Jobs Cut: 11 (20%)
Other info: The company is cutting costs to enable the development of its oncology pipeline.
Company Name: Oscient Pharmaceuticals
Date Announced: February 11, 2009
Jobs Cut: about 100 (1/3rd of the firm)
Other info: The company is considering putting itself up for sale.
Company Name: Teva Pharmaceuticals
Date Announced: February 10, 2009
Jobs Cut: 1090
Other info: 300 of the job cuts will be at a plant in Doral, Fla., and 790 jobs at Pliva, a Zagreb, Croatia-based firm that Teva acquired from Barr Pharmaceuticals late last year.
Company Name: KV Pharmaceutical
Date Announced: February 9, 2009
Jobs Cut: 700
Other info: Recently, the St. Louis-based company voluntarily recalled most of its products and suspended all of its manufacturing after FDA inspections turned up "manufacturing and quality-assurance issues," KV says.
Company Name: Advanced Life Sciences
Date Announced: February 11, 2009
Jobs Cut: 9 (30%)
Other info: Company plans to conserve cash and focus resources on commercializing its first product, the antibiotic cethromycin.
Company Name: Rigel Pharmaceuticals
Date Announced: February 3, 2009
Jobs Cut: 36 (20%)
Other info: Company plans to focus on compounds in preclinical and clinical studies and halt research programs in virology and oncology.
Company Name: King Pharmaceuticals
Date Announced: February 3, 2009
Jobs Cut:760 (22%)
Other info: Cuts come as the company integrates Alpharma, the specialty drug company it bought last year for $1.6 billion.
Company Name: Hollis-Eden Pharmaceuticals
Date Announced: February 2, 2009
Jobs Cut:20 (33%)
Other info: Company is freezing salaries and suspending bonuses for remaining employees.
Company Name: Alexza Pharmaceuticals
Date Announced: January 30, 2009
Jobs Cut:52 (1/3rd of staff)
Other info: Company plans to devote cash to the development of AZ-003, an inhaled version of the schizophrenia drug loxapine.
Company Name: AstraZeneca
Date Announced: January 26, 2009
Jobs Cut: 7,400 by 2013
Other info: In addition to 7,600 positions eliminated in its 2007 restructuring program. Part of a plan to save the company $2.5 billion.
Company Name: Sepracor
Date Announced: January 26, 2009
Jobs Cut: 530 (20%)
Company Name: Altus Pharmaceuticals
Date Announced: January 26, 2009
Jobs Cut: 105 (75%)
Other info: Will discontinue development of the cystic fibrosis treatment Trizytek, transferring rights to the drug to the Cystic Fibrosis Foundation.
Company Name: Intercytex
Date Announced: January 26, 2009
Jobs Cut: 38 (about 50%)
Other info: Firm needs fewer workers upon completion of Phase III trials of Cyzact, a wound treatment drug
Company Name: Lexicon Pharmaceuticals
Date Announced: January 22, 2009
Jobs Cut: 102 (22%)
Other info: Most cuts in basic research and early-phase discovery
Company Name: Pfizer
Date Announced: January 14, 2009
Jobs Cut: Up to 800 (between 5 and 8%)
Other info: Cuts affect researchers and other employees in its Pfizer Global Research & Development division
Company Name: Bristol-Myers Squibb
Date Announced: December 16, 2008
Jobs Cut: 3,700 (10%) positions cut by 2010, in addition to 4,350 from 2007 plan
Company Name: Jazz Pharmaceuticals
Date Announced: December 16, 2008
Jobs Cut: 71 (24%) positions cut
Company Name: EntreMed
Date Announced: December 16, 2008
Jobs Cut: 30 (60%) positions cut
Company Name: Pfizer
Date Announced: December 12, 2008
Jobs Cut: 700 jobs in France in addition to 10,000 since early 2007
Company Name: Titan Pharmaceuticals
Date Announced: December 2, 2008
Jobs Cut: about 17 (40%) positions cut
Company Name: AstraZeneca
Date Announced: November 20, 2008
Jobs Cut: 1,400 jobs by 2013 positions cut
Other info: Plans to close manufacturing sites in Spain, Belgium, Sweden
» Latest Business News
June 13, 2011
Building Small
(June 13, 2011 | Vol. 89 Issue 24 | pp. 12-17)Nanotechnology makes inroads in the construction industry.
Degrading Plastics (Member Content)
(June 13, 2011 | Vol. 89 Issue 24 | pp. 20-21)Makers of oxo-degradable additives say they are addressing the litter problem, but others aren't so sure.
Coal Evolution In China (Member Content)
(June 13, 2011 | Vol. 89 Issue 24 | pp. 22-23)Chemical production is highlighted at recent catalysis conference in China.
JSR Plans Ahead (Member Content)
(June 13, 2011 | Vol. 89 Issue 24 | p. 25)The firm aims to compete globally in rubber while developing cutting-edge materials.
Pfizer Expands R&D Network
(June 13, 2011 | Vol. 89 Issue 24 | p. 8)Partnership: Eight Boston research institutions will form a third regional hub.
New Cracker For Appalachia
(June 13, 2011 | Vol. 89 Issue 24 | p. 9)Shell's proposed facility will reverse a petrochemicals exodus from the region.
Business Concentrates (Member Content)
(June 13, 2011 | Vol. 89 Issue 24 | p. 19)
June 6, 2011
BPA Debate
(June 6, 2011 | Vol. 89 Issue 23 | pp. 13-22)Researchers disagree about potential toxicity of the estrogen mimic bisphenol A.
Stretching Paint Performance (Member Content)
(June 6, 2011 | Vol. 89 Issue 23 | pp. 26-28)Functional additives push water-based paint into applications that were once unheard of.
Nanoparticles: Research Firm Tries Its Hand At Making Self-Healing Paint (Member Content)
(June 6, 2011 | Vol. 89 Issue 23 | p. 28)
Benchtop Informatics (Member Content)
(June 6, 2011 | Vol. 89 Issue 23 | pp. 30-31)Accelrys is pushing to expand its market with electronic laboratory notebooks.
Urea's Unlikely Role (Member Content)
(June 6, 2011 | Vol. 89 Issue 23 | p. 32)Emissions reduction is new application for chemical best known as a fertilizer.
Ashland Dives Into Specialties
(June 6, 2011 | Vol. 89 Issue 23 | p. 9)Acquisitions: Purchase of ISP will sharpen focus on personal care, drug ingredients.
R&D Globalization
(June 6, 2011 | Vol. 89 Issue 23 | p. 9)Belgium's Solvay teams up with South Korean university.
Clean Technology
(June 6, 2011 | Vol. 89 Issue 23 | p. 11)Investors latch on to biobased-chemical makers.
Business Concentrates (Member Content)
(June 6, 2011 | Vol. 89 Issue 23 | pp. 24-25)
» Career & Employment
News and analysis of the employment market, trends and career best practices.
March 9, 2009
ACS News: Employment & Salary Survey
Salary gains and steady employment for chemists mark 2008 survey.
Fueling An Analytical Chemistry Career
Stimulus bill may energize employment in renewable energy.
January 26, 2009
Postdocs Feel Job Crunch
As recession deepens, postdocs find themselves caught in a difficult academic job market.
November 3, 2008
Special Issue: Employment Outlook
Thinking Creatively About Work
Economic turmoil points to a hazy outlook; a little imagination can open up job opportunities.
June 2, 2008
ACS News: Starting Salaries
2007 chemistry graduates entered a still relatively strong U.S. job market and did quite well
» more career & employment news
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