Dow is to slash 1,500 jobs globally as part of a strategic move to save $1 billion.
The cost-saving plan is in response to ‘ongoing macroeconomic uncertainty’ and would reinforce its long-term competitiveness, the Michigan, US-based chemical company said.
The business, which operates manufacturing sites in 30 countries and currently employs 36,000 people, said it also expects to save a further $500 million to $700m by reducing direct costs, primarily on purchased services and third-party contract labour.
“While these decisions are difficult, we must continue to take proactive actions to reduce costs while we navigate through this ongoing slower-than-expected macroeconomic recovery,” said Jim Fitterling, Dow chair and chief executive.
“These cost-actions support our commitment to our long-term growth objectives, while aligning spending levels to the realities of the current macroeconomic environment. As 2025 progresses, we will continue to evaluate options to reinforce our competitiveness and take further action if necessary.”
In December, Dow completed the $150m sale of its flexible packaging laminating adhesives business to speciality materials firm Arkema.
In the same month, Dow Chemical announced that it is to collaborate with Innventure on the development of new waste-to-value technologies.
