Hexion layoffs, on the record
Every job cut, severance charge and restructuring Hexion reported in its annual reports, 2018 to 2020, quoted from the filings. Headcount went from approximately 4,000 to approximately 2,600.
Headcount, as reported
| Annual report | Employees | As of |
|---|---|---|
| 10-K for 2018 | approximately 4,000 | December 31, 2018 |
| 10-K for 2019 | approximately 4,000 | December 31, 2019 |
| 10-K for 2020 | approximately 2,600 | December 31, 2020 |
Job cuts, severance and restructuring
Our summaryThe company initiated new restructuring actions in November 2017 to optimize its cost structure, consisting primarily of workforce reduction costs.
Word for word“In November 2017, the Company initiated new restructuring actions with the intent to optimize its cost structure.” 10-K for 2018
Our summaryThe company indefinitely idled an oilfield manufacturing facility in its Epoxy, Phenolic and Coating Resins segment and shifted production to another facility.
Word for word“During the first quarter of 2018, the Company indefinitely idled an oilfield manufacturing facility within its Epoxy, Phenolic and Coating Resins segment, and production was shifted to another facility within the oilfield manufacturing group.” 10-K for 2018
Our summaryThe company reported a 2017 restructuring program, consisting primarily of workforce reduction costs, with a lower estimated cost of $14 and a remaining accrued liability of $4.
Word for word“The total one-time cash costs expected to be incurred for these restructuring activities are estimated at $14 , consisting primarily of workforce reduction costs.” 10-K for 2018
Our summaryThe company reported business realignment costs, including severance and facility closure expenses, that were lower in 2018 than in 2017.
Word for word“The decrease in business realignment costs is largely attributable to lower severance and facility closure related expenses in 2018 .” 10-K for 2018
Our summaryThe company achieved cost savings from its cost reduction programs and had additional in-process cost savings, with an approximately $40 cost savings program announced in the fourth quarter of 2017 essentially fully realized.
Word for word“We have essentially realized all cost savings associated with the approximately $40 cost savings program announced in the fourth quarter of 2017.” 10-K for 2019
Our summaryThe company recorded restructuring charges in 2018 and early 2019 and paid out restructuring reserves, with the accrued liability at December 31, 2019 of $2.
Word for word“Accrued liability at December 31, 2019 $ 1 $ 1 $ — $ 2 Oilfield During the first quarter of 2018, the Company indefinitely idled an oilfield manufacturing facility within its Epoxy, Phenolic and Coating Resins segment, and production was shifted to another facility within the oilfield manufacturing group.” 10-K for 2019
Our summaryBusiness realignment costs rose in 2020 because of higher severance expenses from current cost reduction actions.
Word for word“a $33 increase in business realignment costs driven by higher severance expenses related to current cost reduction actions and a decrease in gross profit due primarily to the impacts of COVID-19 on volumes in our businesses.” 10-K for 2020
Our summaryThe company achieved cost savings from cost reduction programs, including facility rationalizations and a new business service group for administrative functions.
Word for word“During 2020, we achieved $23 in cost savings related to our cost reduction programs.” 10-K for 2020
Our summaryThe company expects a net positive liquidity effect in 2021 from savings tied to facility rationalizations and the new business service group.
Word for word“• Restructuring Activities : We expect that the 2021 cost savings associated with our in-process facility rationalizations and the creation of a business service group within the Company to provide certain administrative functions for us going forward will have a net positive impact on our liquidity.” 10-K for 2020
Our summaryThe company reported severance liabilities accrued at year-end that it expects to pay within 12 months.
Word for word“(a) The Company had $8 of severance liabilities accrued within “Other current liabilities” on the Consolidated Balance Sheets at both December 31, 2020 and 2019.” 10-K for 2020
| Fiscal year ended | Severance costs | Cash paid for restructuring |
|---|---|---|
| 2017-12-31 | — | $16 million |
| 2018-12-31 | $9 million | −$16 million |
| 2020-12-31 | $16 million | — |
Hexion has filed no restructuring notice (Form 8-K, Item 2.05) since 2016. Companies file one only for a cut they judge material, so many announced layoffs never appear as one. This page shows what the company reported to the SEC, not news reports or state layoff notices.
Read from Hexion’s annual reports (10-K for 2020, 10-K for 2019, 10-K for 2018) and the financial data it files with the SEC, as of 2021-03-10. Every quotation is word for word from the filing linked beside it; how these pages are built and checked. The full record is in its company data sheet.