(Reuters) - Dow Chemical Co DOW.N, the largest chemical maker in the United States, said it will rework its business structure and appoint business presidents who will report directly to an executive committee.
The move is partly Dow’s response to the weak global economy as it tries to boost sales by cutting bureaucracy and responding more quickly to customer requests.
In July, Dow reported a lower-than-expected second-quarter profit as worldwide demand for chlorine, plastics and electronic parts plunged.
“We will have less structure at the top of the company with more deployment and implementation in the markets and out in the field,” Chief Executive Andrew Liveris said in a statement on Tuesday.
The business presidents, who will be named later this week, will report to a five-member executive committee that includes Liveris and Chief Financial Officer Bill Weideman.
The committee will “be accountable for setting the overall direction and strategy for Dow,” spokeswoman Rebecca Bentley said in an e-mail.
The company said it will immediately eliminate the current business division structure and move to a global business unit model.
The change will not affect how Dow reports its quarterly results in its seven operating segments. The company’s third-quarter results are set to be released October 25.
Dow Chemical’s shares fell 1.8 percent to $28.77 in afternoon trading.
Reporting by Ernest Scheyder in New York and Divya Lad in Bangalore; Editing by Supriya Kurane, Maureen Bavdek and David Gregorio