Dow Chemical joins the layoffs bandwagon, cutting 4,500 jobs
The company said the move will save $2 billion or more as it leans more heavily on AI and automation to get things done
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Chemical maker Dow Inc. is the latest company to announce substantial layoffs as it pivots to a stronger reliance on artificial intelligence and automation.
The company, on Thursday, announced it would cut 4,500 jobs as part of a streamlining operation it calls "Transform to Outperform." The cuts will provide a $2 billion boost in near-term revenue, the company said, but will bring with them between $1.1 billion and $1.5 billion in one-time costs, including severance and other costs.
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The moves represent roughly 12% of the company's workforce. Dow had 36,000 employees as of December 2024, according to Bloomberg.
"The goal of Transform to Outperform is to achieve significant growth and productivity gains that elevate Dow's competitive position," said Karen S. Carter, Dow's chief operating officer, in a statement. "We are building on the momentum of our current self-help measures – transforming Dow into a company that is more resilient, consistently delivers growth, enables customer success, and delivers greater shareholder value across the cycle."
Shares of the company were up roughly 3% in pre-market trading.
Dow, like other chemical companies, has seen demand flatten in recent years, along with stricter regulations and higher production costs. In its most recent earnings, which were also announced Thursday morning, the company reported an adjusted loss of 34 cents per share, beating analysts' expectations of a 46 cent loss. The company credited “self-help measures” for the beat.
Dow joins a growing number of companies that are shrinking their workforce. Pinterest $PINS, earlier this week, announced plans to reduce its workforce by 15% and Amazon $AMZN, on Wednesday, said it would cut 16,000 jobs, as it pushed AI and efficiency.