DSM to scrap 1,000 jobs worldwide, profits drop 90%

Limburg-based chemicals group DSM on Tuesday announced it is to scrap 1,000 jobs worldwide.

The company saw its net profit drop 90% in the second quarter to €41m, compared with the year-earlier period. Operating profit was down 16% to €290m and turnover down 1% to €2.69bn.

Currently, 22,624 people work for DSM, of which there are 6,100 in the Netherlands.

Around half the job reduction will take place in Europe, CEO Feike Sijbesma told tv station CNBC. Scrapping the jobs is expected to raise company results by €150m in 2014, he said.

Caprolactam

Most of the drop in profit came from the adverse results of Caprolactam, a raw material used in nylon. These came under pressure from increasing competition and the nervousness of customers about economic developments, Sijbesma said.

The vitamine division of DSM once again showed the best results. Turnover continued to grow through increasing demand and rising prices.