Dow\u00a0will slash about 4,500 jobs, or \u200c13% of its total workforce, under a sweeping restructuring aimed at boosting profitability by at least $2 billion, while projecting first-quarter revenue below expectations on stubbornly weak demand.<\/p>\n\n\n\n
Shares of the company fell 5.8% in morning trading on Thursday.<\/p>\n\n\n\n
Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter.<\/p>\n\n\n\n
The job cuts will also \u200creduce third-party roles and resources, executives said on a post-earnings call, \u200bas the company streamlines all its end-to-end work processes by using automation and AI to lower costs and improve efficiency.<\/p>\n\n\n\n
Global chemical producers are reassessing their strategies \u200damid stagnant demand, rising production costs in Europe, changing regulatory requirements and persistent global oversupply.
Dow, which began a strategic review of some European assets in 2024, has also been re-evaluating its ownership \u2060of non-core assets across its global portfolio, including power and steam production \u200dand pipelines.<\/p>\n\n\n\n
CEO Jim Fitterling said the company expects to deliver by the end of the year \u200cthe \u200cremaining more than $500 million in cost savings from its previously announced $1 billion program.
Dow, which operates manufacturing sites in 29 countries and employs about 34,600 people, expects to incur about $1.1 billion to $1.5 billion in one-time costs tied to the restructuring \u2060in 2026 and \u20602027.<\/p>\n\n\n\n
The company did \u200bnot detail which business units or sites will be affected by the planned job reductions.<\/p>\n\n\n\n
The company forecast first-quarter net sales of $9.4 billion, below analysts’ average estimate of $10.33 billion, \u200daccording to data compiled by LSEG.<\/p>\n\n\n\n
Dow said modest seasonal demand improvements and benefits from cost controls during the quarter could be offset by planned maintenance and continued downward pressure, especially \u200bin the building and construction market.<\/p>\n\n\n\n
The Michigan-based company \u200dreported a smaller-than-expected adjusted loss of 34 cents per share, compared with analysts’ average estimate of a \u200bloss of 46 cents.<\/p>\n","protected":false},"excerpt":{"rendered":"
Dow\u00a0will slash about 4,500 jobs, or \u200c13% of its total workforce, under a sweeping restructuring aimed at boosting profitability by at least $2 billion, while projecting first-quarter revenue below expectations on stubbornly weak demand. Shares of the company fell 5.8% in morning trading on Thursday. Make sense of the latest ESG trends affecting companies and<\/p>\n","protected":false},"author":1,"featured_media":21231,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[75],"tags":[467],"class_list":{"0":"post-21230","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-international","8":"tag-dow"},"_links":{"self":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts\/21230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/comments?post=21230"}],"version-history":[{"count":1,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts\/21230\/revisions"}],"predecessor-version":[{"id":21232,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/posts\/21230\/revisions\/21232"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/media\/21231"}],"wp:attachment":[{"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/media?parent=21230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/categories?post=21230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cpmirror.com\/index.php\/wp-json\/wp\/v2\/tags?post=21230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}