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(Sharecast News) - Dow said on Thursday that it would cut about 4,500 jobs globally as part of a broad operational overhaul aimed at lifting earnings and offsetting weak demand across its core markets, particularly packaging and specialty plastics.
The Michigan-based chemicals giant said the restructuring was expected to deliver at least $2bn of uplift to near-term operating EBITDA, with roughly two-thirds of the benefit coming from productivity gains, including increased use of artificial intelligence and automation, and the remainder from growth initiatives.
It expected the plan to trigger one-off costs of between $1.1bn and $1.5bn, including $600m to $800m in severance expenses.
The announcement came alongside a weaker fourth-quarter performance.
Dow reported a 9.1% year-on-year fall in net sales to $9.46bn, slightly below market expectations, as lower prices and volumes weighed on results, particularly in its plastics businesses.
On an adjusted basis, the company posted a net loss of $1.5bn for the quarter, though that was narrower than analysts had forecast, helped by benefits from an earlier cost-cutting programme.
Chief executive Jim Fitterling said Dow has already achieved "well over half" of its $6.5bn target for near-term cash support, adding that management remains focused on cost discipline while navigating what it described as an unprecedented industry downturn.
The group had been reviewing parts of its European asset base since 2024 and had already announced plant closures and workforce reductions in the region.
Investors reacted positively to the scale of the planned savings, with Dow shares rising more than 2% in premarket trading, despite the stock having fallen more than 40% over the past year.
Dow employs around 34,600 people globally, and the latest cuts marked a significant escalation from earlier plans to eliminate about 1,500 roles as part of a $1bn cost-saving drive announced last year.
At 1205 ET (1705 GMT), shares in Dow were down 3.38% in New York at $26.84.
Reporting by Josh White for Sharecast.com.