Eastman elaborates on impact of global headcount reduction

KINGSPORT — Eastman Chemical Co. further clarified the implementation of a workforce reduction rolled out this year. During a third quarter earnings call earlier this month, Eastman Chief Financial Officer William McLain told investors the company implemented a 7% global headcount reduction this year in response to the current environment, the evolution of artificial intelligence and to remain competitive. He said the cost reductions for 2025 to 2026 are estimated to save the company approximately $175 million and will help offset some of the declines in the fiber and chemical intermediate sectors that may not be recovered. An Eastman spokesperson said in an earlier email statement that the company expects the total number of reduced positions to be "less than 1,000," or approximately 7%, of its global workforce. According to the company's website, Eastman currently employs 14,000 people worldwide. "Regarding your question, during Eastman's third-quarter sales and earnings conference call, CFO Willie McLain referenced that the company is reducing an additional $175 million in costs from 2025-2026, which includes reduction of contracted services, material spend, asset footprint optimization, leveraging digital solutions, yield and energy improvements, as well as labor costs," the spokesperson said. A majority of these reductions are being achieved through retirement and natural attrition, limited hiring and limited backfilling of vacated positions, according to the Eastman spokesperson. "As a normal course of business, and especially in a difficult economic environment like we're currently facing, we regularly assess our business structure and capabilities to drive effectiveness and efficiencies in the business, and throughout the year may make adjustments to enable Eastman's competitiveness in our markets," the spokesperson said. "The labor reduction referenced has been underway globally throughout the year." Specific details could not be shared about the reduction impact at Eastman's Kingsport location, the spokesperson added — while also noting that it is a global reduction, with more than a local impact. "Please note that this is a global reduction," the statement read. "We do not provide details by location."