Saint-Gobain to cut 6,000 jobs worldwide

French glass and building materials group Saint-Gobain SA plans to cut 6,000 jobs worldwide within a year, including 4,000 by the end of 2008, to adapt to the economic downturn, the company said on 24…

French glass and building materials group Saint-Gobain SA plans to cut 6,000 jobs worldwide within a year, including 4,000 by the end of 2008, to adapt to the economic downturn, the company said on 24 July 2008. The workforce reductions are expected to save the group EUR 435 million (USD 682.8 million) for the full year, of which EUR 300 million (USD 470.9 million) for 2008. Most of the job losses will be made in the US, the UK and Spain, where the construction market is clearly deteriorating. Excluding capital gains and losses, asset write-downs as well as the fine imposed by the European Commission for flat glass price fixing in Europe, Saint-Gobain“s net profit came in at EUR 1.1 billion (USD 1.7 billion) in the 1H 2008, up 3.2% on the year. The difficult economic climate and rising commodity and energy prices prompted Saint-Gobain to lower its full-year earnings outlook. The company now expects to maintain operating and net profit at last year“s levels at constant exchange rates, after previously forecasting a “modest” growth.