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Eastman Lays Off 200 This Week

Eastman Comes Through On Promise Of Layoffs (Added: April 06, 2009)

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Betty Payne, spokeswoman for Eastman Chemical Co., spoke today at a press conference at Meadowview Conference Center.

By Heather Provencher
Published: April 06, 2009

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Eastman Chemical Company followed through on their promise of layoffs today, nearly a month since they first announced that 200 to 300 positions would be eliminated from the company world-wide.

Representatives from Eastman held a brief press conference Monday at Meadowview Conference Center in Kingsport, announcing the beginning of permanent layoffs and a list of more changes this year.

This week, workers at Eastman’s Kingsport plant, one of the region’s largest employers, will receive notices informing them of their severance. An estimated 200 of 7,000 employees will be eliminated.

The layoffs are a result of “global targeted reduction,” according to Betty Payne, spokeswoman for the company. Targeted positions include technicians, technologists and management, among others. Jobs such as electricians, mechanics and operators will not be part of the layoffs.
“In the company’s reorganization,” said Payne, “the jobs are not going to be the same. It is important to match these [jobs] with the new future of the company.”

Salaries, she said, were not a factor in the decision.

Those who are left without a job this week will receive severance packages, which include two weeks of pay for each year of service up to 52 weeks; four months of continued medical benefits and outplacement services to help them find other employment.

Other changes include pay cuts and belt-tightening on the company’s part. As of March 30, all Eastman employees in the United States had their pay reduced by 5 percent. The company also plans to reduce “non-critical maintenance costs,” logistics costs and discretionary spending in the coming months.

“These are sad and difficult times for our company,” said Payne, who also added that the company continues to strengthen financially despite cutbacks.

Payne also denied the allegations that Eastman will offer voluntary buy-outs for employees.

Tonight, News Channel 11 will explore past Eastman layoffs, how this might affect the local economy and what this means to the city of Kingsport and the Tri-Cities region.