DSM cutting up to 1,100 jobs, half in the Netherlands

DSM, the Dutch-based multinational life sciences and material sciences company, has announced a reorganization in which between 900 and 1,100 jobs will be lost. About half of these jobs are in the Netherlands. The company made this announcement on Wednesday. The restructuring will affect support functions, such as the IT department, legal department, human resources and financial department. The company is also taking measures to make its global Research and Development centers work more efficiently. According to the company, this reorganization should result in "a more efficient pooling of resources with clearer accountability for performance". The reorganization should be fully implemented by end 2017. The structural savings are estimated at between 125 and 165 million euros, compared to last year. And the company expects that the once-off restructuring expenses, including severance pay, will be between 150 and 175 million euros before tax. The company is also working on strategic plans to improve the growth of food department Nutrition. These plans will be announced on November 4th. "In an increasingly global and fast-paced business environment we need to adapt our organizational and operating model to service our customers even better.", Feike Sijbesma, CEO of the Managing Board, said about the reorganization. "With the adjustments announced today, we become more agile, focused and cost-efficient." DSM employs about 25 thousand, of which about 5 thousand are employed in the Netherlands, according to NU.