Dow Chemical Co said it will close 20 facilities, divest several businesses and cut 5,000 jobs, making it the latest large chemical company to throttle back operations due to the global economic slump.

In addition to cutting 5,000 full-time jobs, or 11 percent of its workforce, the company also plans to reduce the number of outside contractors it employs by 6,000, or about 30 percent, and temporarily idle about 180 plants. Dow's shares rose over 7 percent in afternoon trade following the announcement.

Dow said its action, which comes less than a week after its US rival DuPont Co announced cutbacks, marks an acceleration of its "transformational strategy" and should lead to annual cost savings of $700 million by 2010.