The DuPont Chemical Company announced Friday it will lay off 1,500 people as part of a restructuring.
The company said it will pay $3 million in severance to affected workers, as well as $5 million in other benefits.
The layoffs are part of the company’s efforts to streamline its operations and help boost earnings, CEO Mark J. Williams said in a statement.
“We are committed to bringing back our employees, but also to investing in our growth and to improving the quality of our products and services,” Williams said.
DuPont said it expects the layoffs to be complete by the end of the year.
The restructuring comes after a decade of rapid growth and consolidation, in which the company has been able to make acquisitions and grow at a much faster rate than its rivals.
DuPont, based in Ann Arbor, Mich., is the nation’s third-largest producer of chemicals.
The stock fell 6 percent on the news.
Du Pont said the layoffs were part of an ongoing effort to streamlight its operations.
“DuPont’s transformation is now complete and the company is investing in the future, leveraging our strategic and financial capabilities to deliver even better value to our customers,” Williams wrote in the statement.
In October, DuPont agreed to buy DuPont-Boeing’s $10 billion chemical business for $11 billion.
The merger, which is expected to be completed by the third quarter, will also lead to the purchase of DuPont’s natural gas operations, a $5 billion acquisition that DuPont had previously announced.
The deal also included a $1 billion purchase of a major chemical manufacturing company, DuMountain, for $3 billion.