French glass maker Saint-Gobain cutting jobs as economy worsens

French building materials giant Compagnie de Saint-Gobain SA said it would slash 6,000 jobs as part of a €435 million ($682 million) cost-cutting plan to adapt to worsening global economic conditions.

Saint-Gobain, a leading supplier of glass to the automotive and building industries, said 4,000 of the job cuts would be made this year, accounting for most of the €300 million ($470 million) cost savings this year.

Most of this year´s cuts will be made in the U.S., 1,550 jobs; the U.K., 1,100 jobs; and Spain, 270 jobs, spokeswoman Sophie Chevallon said Friday. In the rest of Europe, cuts will be made through the end of temporary work contracts, a hiring freeze and the non-replacement of departing employees, Chevallon said.

Saint-Gobain employs about 210,000 people worldwide.

The company also cut its earnings target for this year, saying it now expects to make operating and net profit close to last year´s level. In April, Saint-Gobain said that despite the "more challenging economic conditions" it was confident of achieving modest growth in operating and net profit.

Last year, Saint-Gobain made net profit of €2.1 billion ($3.3 billion at current rates) and operating profit of €4.1 billion ($6.4 billion), on sales of €43.4 billion ($68 billion).

Saint-Gobain "does not expect the U.S. economy to stage a recovery" in the second half, and "assumes that the construction market in Western Europe will continue to lose steam," the company said in a statement late Thursday.

Saint-Gobain also reported first half net profit rose 3.2 percent to €1.1 billion ($1.7 billion) on sales of €22.1 billion ($34.7 billion).