Ecolab Cuts 70 IT Jobs in St. Paul, Eagan
Ecolab, Inc., laid off 70 employees in the Twin Cities area last week as part of a restructuring and cost-saving effort that the company announced earlier this year, according to a Pioneer Press report.
The affected employees, who worked in information technology in Ecolab's St. Paul headquarters and its Eagan facility, were reportedly notified on Thursday. The cuts represent 3 percent of Ecolab's Twin Cities work force and 20 percent of its information technology work force in the metro area, the St. Paul newspaper reported.
In January, Ecolab announced plans to cut about 500 positions from its global work force. The job cuts are part of a restructuring related to Ecolab's $8.3 billion acquisition of Naperville, Illinois-based Nalco Holding Company-a deal that it completed in December. Ecolab CEO Douglas Baker, Jr., said at the time that the restructuring and cost-saving efforts “are designed to enable us to more quickly realize and increase the merger-related cost synergies and improve the efficiency and effectiveness of our global business.”
The company expects the restructuring moves to save it $75 million this year and to provide ongoing annual cost savings of $250 million after that.
In addition to the 70 local job cuts last week, Ecolab has reportedly cut a handful of other Twin Cities jobs since January. It also reportedly cut 40 IT jobs outside of the Twin Cities last week.
Ecolab spokesman Roman Blahoski told the Pioneer Press that the company is consolidating Ecolab's software and hardware operations with Nalco's.
“We're able to operate the larger business on a smaller combined base,” Mike Monahan, Ecolab's senior vice president of external relations, told the St. Paul newspaper. Ecolab is also trying to refocus IT roles and functions to make them more productive and efficient, he added.