Dow to Cut 4,500 Jobs in AI-Driven Restructuring Plan
Dow will cut about 4,500 jobs, or 13% of its total workforce, as part of an initiative that will leverage artificial intelligence to drive growth, the company said Jan. 29.
The company launched the program, called Transform to Outperform, on the same day it reported fourth-quarter 2025 net sales dropped 9% to $9.5 billion from the year-earlier period.
Dow expects the plan to add about $2 billion in operating earnings before interest, taxes, depreciation and amortization over three years. The company will incur $1.1 to $1.5 billion in one-time costs associated with the program, including $600 million to $800 million attributed to severance pay.
A Dow spokesperson declined to specify how many of the 4,500 job cuts were directly related to the company's AI investments or how the technology would be deployed, saying only that the restructuring will simplify the company's operating model and modernize how it serves customers.
“The transformation is designed to strengthen how we operate by removing complexity, reducing bureaucracy and breaking down silos so it is easier and more efficient to get things done,” said Sarah Young, corporate media relations director for Dow, in an email. “Headcount reduction decisions will be based on business need and the roles required going forward, as we put the right roles in the right areas of the company to better align with the changing market landscape and with the needs of our customers.”
The AI initiative will help the company address a prolonged industry downturn and structural industry challenges, said Dow CEO Jim Fitterling.
About the Author
Jonathan Katz
Executive Editor
Jonathan Katz, executive editor, brings nearly two decades of experience as a B2B journalist to Chemical Processing magazine. He has expertise on a wide range of industrial topics. Jon previously served as the managing editor for IndustryWeek magazine and, most recently, as a freelance writer specializing in content marketing for the manufacturing sector.
His knowledge areas include industrial safety, environmental compliance/sustainability, lean manufacturing/continuous improvement, Industry 4.0/automation and many other topics of interest to the Chemical Processing audience.
When he’s not working, Jon enjoys fishing, hiking and music, including a small but growing vinyl collection.
Jon resides in the Cleveland, Ohio, area.