Dow Inc. will cut 2,000 jobs and shut down select assets in an effort to save $1 billion, the company said Jan. 26.
Dow, which has a global workforce of 35,700 people, said the cuts are necessary to optimize its cost structure due to macroeconomic uncertainty, including high energy prices.
“We are taking these actions to further optimize our cost structure and prioritize business operations toward our most competitive, cost-advantaged and growth-oriented markets, while also navigating macro uncertainties and challenging energy markets, particularly in Europe," said Jim Fitterling, Dow chairman and CEO. "We remain committed to capitalizing on our long-term growth opportunities in a disciplined and balanced manner, and these actions further position us to advance our Decarbonize and Grow strategy and strengthen our competitive
The job cuts and asset shutdowns, along with process improvements, will contribute to $500 million in structural savings. The company plans to further evaluate its global asset base, particularly in Europe to achieve additional operational savings.
The company expects to save an additional $500 million by decreasing turnaround spending and reducing raw materials, logistics and utilities expenses.
Dow will record a charge of $550 million to $725 million in the first quarter of 2023 for costs associated with these activities, which primarily include severance and related benefit costs, costs associated with exit and disposal activities and asset write-downs and write-offs.
The company said it remains on track to grow its underlying EBITDA by greater than $3 billion by 2030 while reducing its carbon emissions by 30% versus its 2005 baseline as part of a plan to reach carbon neutrality by 2050.