Eastman Chemical cuts global workforce, sees annual profit below estimates on tariff woes

Nov 3 (Reuters) - Eastman Chemical EMN.N forecast annual profit below analysts' estimates on Monday, and said it would cut its workforce by nearly 7%, as the industry continues to face lackluster demand, sending its shares down more than 3% in extended trading.

Eastman said the workforce reductions would result in total cost savings net of inflation of $175 million across 2025 and 2026, and are targeted to address the decline in earnings at its Fibers and Chemical Intermediates segment.

U.S. President Donald Trump's tariffs on most imports have posed as a challenge for global chemical companies, prompting them to reassess strategies due to increasing production costs and lackluster demand.

Eastman Chemical expects its adjusted profit to be between $5.40 and $5.65 per share for 2025, compared with analysts' average estimate of $5.77 per share, according to data compiled by LSEG.

The Kingsport, Tennessee-based company also missed the estimate for third-quarter profit.

It earned $1.14 per share on an adjusted basis, while analysts expected $1.16 per share.

"In the third quarter, we realized a slowdown in orders due to normal seasonality and customers unwinding inventory that was prepositioned to avoid tariff risk in a weakening consumer environment," CEO Mark Costa said in a statement.

The company expects most of this pre-buy inventory to be depleted by this year end.

Eastman, whose chemicals are used across the construction, agricultural and automotive sectors, said it expects operating cash flow to approach $1 billion in 2025.