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Dow to Slash 1,500 Jobs From Global OperationsDow to Slash 1,500 Jobs From Global Operations

Layoffs are among the cost-cutting measures Dow is implementing to achieve $1 billion in savings.

David Hutton

January 30, 2025

2 Min Read
Dow logo
Image courtesy of Dow

In a move to reduce costs amid what it termed as uncertain macroeconomic conditions, Dow Inc. is taking proactive steps expected to result in $1 billion in savings. 

To reduce costs, the company will eliminate 1,500 jobs globally to cut labor costs, and trim another $500 million to $700 million in a reduction of direct costs, primarily focused on purchased services and third-party contract labor. 

Jim Fitterling, Dow chairman and CEO, acknowledged that the decisions are difficult. 

“We must continue to take proactive actions to reduce costs while we navigate through this ongoing slower-than-expected macroeconomic recovery," he said. “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."

Dow has announced that it will allocate between $250 million and $325 million in the first quarter of 2025 for restructuring expenses, including severance and related benefits. The company expects these costs to be incurred gradually, with estimated charges ranging from $20 million to $30 million.

As part of its ongoing restructuring efforts, Dow emphasized its commitment to engaging local stakeholders in each region. This will ensure compliance with local regulations and consultation processes throughout the implementation phase.

Related:Dow Delivers Bio-based EPDM

The announcement came alongside Dow's fourth-quarter financial results, which fell short of Wall Street’s expectations, according to Seeking Alpha. The company’s stock experienced a dip in early Thursday trading in response, according to the website. 

Earnings report notes decline in packaging, plastics sales

In its fourth quarter earnings report, also released today, Dow highlighted a decline in sales within its Packaging and Specialty Plastics division, with net sales down 4% on a sequential basis, fueled by lower polyethylene prices. 

Ultimately, Dow noted that amid falling sales, demand for industrial and consumer packaging was unable to fully offset the impact of lower prices.

Fitterling noted the company in December signed a definitive agreement for the sale of a minority stake in select US Gulf Coast infrastructure assets for expected cash proceeds of up to approximately $3 billion. 

“The partnership represents a new business model designed to drive operational efficiencies and growth with new customers, while providing near-term financial flexibility,” he said.

European assets undergoing review

In addition to the moves to save $1 billion, he said the company also announced a strategic review of select European assets.

“These collective actions represent a continuation of Dow’s commitment to maintaining our strong financial foundation and supplementing near-term cash flow,” Fitterling said

Fitterling added in the earnings report that the company is completing its cost-cutting measures while staying the course on its long-term strategic goals. 

“Our proactive interventions are necessary for Dow to continue to successfully navigate this economic downcycle,” he concluded. 

About the Author

David Hutton

David Hutton is a journalist with more than 25 years of experience as an editor and writer with daily newspapers and trade publications. 

A Kent State University graduate, he was born in Canton, Ohio, and is a lifelong writer. David started his professional career as a reporter and page designer with the Parkersburg Sentinel in Parkersburg, West Virginia. He returned to his hometown, taking a role with the Massillon Independent, where he rose to the position of managing editor.

David’s career next took him to October Research Corp., where he worked for trade publications in the real estate settlement services industry before returning to daily newspapers as news editor for The Times-Reporter in Dover-New Philadelphia, Ohio. While there, he oversaw design of the newspaper and won an Associated Press award for Best Page 1 Design. 

In 2012, David joined the staff of Plastics News as research analyst. He was responsible for the production of data research reports providing analysis of various segments and end markets of the plastics industry. He also produced content for the publication. 

In 2019, David joined Ophthalmology Times, serving as managing editor of the publication covering the latest advancements in the ophthalmology industry for physicians and clinicians. 

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