Dallas, Texas 12/04/2013 (Financialstrend) – Potash Corp./Saskatchewan (USA) (NYSE:POT), the $27.42 billion market capped chemical manufacturer has been attempting to change course in order to cut its losses and emerge as a leaner and stronger player. A more imputes has been added to its restructuring efforts when the Canada based fertilizer firm announced week third quarter results.
Potash Corp Cuts Jobs
Hence the firm announced earlier this week that it would be bringing in a host of restructuring efforts including reduction in work force. As per the plan close to 1000 employees of the 5779 employees of this larged cap chemicals and fertilizer major will be losing their jobs. The job cuts are imminent and are expected to be completed by end of this calendar year.
Rationalizing the decision to let go of employees, Potash Corp./Saskatchewan (USA) (NYSE:POT) president and chief executive Bill Doyle has been quoted as saying, “We understand the impact is not only on our people, but also in the communities where we work and live, and PotashCorp will work hard to help those affected through this challenging time.”
Reasons Behind The Re Org
The reasons for the huge 18% cut in work force has been necessitated by a growing weakness in the demand for its products globally and a increasing pressure to reduce price due to bigger and well entrenched completion. These operational difficulties had been highlighted by the third quarter report which had been published during last week of October. It is expected that in the short term due to the lay off the firm is going to face a stiff $70 million towards severance package.
Potash Corp./Saskatchewan (USA) (NYSE:POT) is also anticipating that it would be forced to write down additional assets post the lay off as some of its manufacturing facilities might have to be shut down or reduced in scale.