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*Ingredients company DSM has announced plans to reduce its workforce "by about 5% or 1,000 positions" in addition to further measures to cut costs and stabilise its financial position in the face of the challenging world economy. *

Steps include a reduction in hiring temporary contract workers, project postponement, and stronger focus on purchasing prices.

In a statement, DSM noted its Life Sciences businesses, especially Nutrition, have been unaffected by the current economic situation. However, end markets for DSM’s Materials Sciences businesses, such as automotive, construction and electronics, are seeing steep drops in sales.

“It's clear that the turmoil which began in the financial sector is seriously eroding business and consumer confidence in the wider economy," said Feike Sijbesma, Chairman of the DSM Managing Board.

"Although our Life Sciences businesses are continuing to perform well, most of our Materials Sciences businesses have increasingly been affected by the economic downturn. We are swiftly taking the necessary actions to maximise our cash flow and preserve profitability by reducing working capital and costs, while at the same time further strengthening our competitive position.”