Momentive to cut jobs, benefits

ERJ staff report (TB)

Albany, New York -- Momentive Performance Materials Inc. is cutting 250 full-time positions worldwide and enacting other cost-saving measures in response to the effects of a lagging economy.

Momentive is eliminating merit pay increases for 2009 for US exempt salaried employees, suspending the company matching payments to the Momentive 401(k) Savings Plan and suspending the employee Tuition Refund Program.

These steps, as well as restructuring efforts earlier this year, planned attrition and retirements, will equal about a 9 percent reduction in total employment from levels at the beginning of the year.

Momentive expects to take restructuring charges of about $15 million in the fourth quarter of 2008 and the first quarter of 2009 related to the reduction in force.

President and CEO Jon Rich said while these actions are difficult, the company will continue to take all steps necessary to protect the company, provide exemplary products and service to its customers and position itself for a recovery when it arrives.

From Rubber & Plastics News (A Crain publication)

Press release from Momentive