Dow Chemical (www.dow.com) has announced that it is to cut about 3% of its global workforce after deciding to split off its chlorine activities into a new business. The Michigan-based company said that there will be 1,500-1,750 redundancies.

It also announced “minor adjustments” to some of its manufacturing facilities (including shutting some down) as part of a $1 billion restructuring project that was announced last year. The lay-offs should be completed in the next two years.

The company announced a few weeks ago that it was planning to “carve out” part of its chlorine businesses and merge it with rival Olin, forming a business with revenues of nearly $7 billion.

It expects the transaction to be completed by the end of the year, and it predicts that the move will generate annual cost savings of $300 million.