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DUPONT WILL CUT 5,000 JOBS WITH DOW MERGER - Merger Reduces Corporate Taxes |
| (12/21/2015) |
| By Bob Weaver Following the recent $120 billion dollar merger of Dupont and Dow Chemical, more than 5,000 jobs will be cut. More than 5,000 jobs globally will be cut for the year of 2016. In the Mid Ohio Valley many families rely on DuPont for their paycheck. Dupont is yet to say how many jobs will be affected at the Wood County operation. Dupont has paid out millions of dollars for pollution violations that affected residents of the Mid-Ohio Valley. Along with cutting jobs, the plan also discusses changing their structure to few but larger businesses with multiple functions. The tax-free treatment of the spin-offs Dow Chemical Co and DuPont plan to carry out after they merge their businesses is a prime driver of the deal, potentially saving tens of billions of dollars, industry experts said. The $120 billion merger, announced last week, comes less than a month after drug maker Pfizer Inc said it would use its $160 billion acquisition of Allergan Plc as a way to cut its taxes. That company joins many that have moved their corporate headquarters to foreign counties to evade US taxes. It underscores the growing use of mergers and acquisitions as a way to slash corporate America's tax bill, the globalization of American companies. "The whole structure of this is very, very tax efficient and one of the reasons we are doing it this way, so very beneficial from that standpoint to the shareholders," DuPont CEO Ed Breen told analysts on Friday. "When I looked at every other strategic option to DuPont, there was nothing that came close to this." Despite millions of dollars in tax breaks issued the corporations in the US tax code, they continue to charge operations to foreign counties, and in some cases dummy locations like the Cayman Islands. Dow and DuPont declined to comment on the tax aspects of their deal. |
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