Dow to cut 4,500 jobs under ‘transformation programme'

Midland, Michigan – Dow Inc. has announced plans to cut 4,500 jobs as part of a wide-ranging transformation programme aimed at lifting productivity and delivering at least $2 billion (€1.7 billion) in near-term earnings (EBITDA) improvements.

The initiative, dubbed ‘transform to outperform’, will involve one-time costs of about $1.1–1.5 billion, Dow reported 29 Jan.

These include $600–800 million in severance related to the job reductions and a further $500–700 million in other restructuring costs, the Midland-based company said.

Dow said the programme is designed to “radically simplify the company’s operating model, streamline end-to-end processes, reset its cost structure and modernise how it serves customers.”

This, it noted, will be achieved in part through using AI and automation to drive productivity and growth.

The company expects the measures to deliver operating earnings gains of $500 million in 2026, followed by a further $1.2 billion in incremental improvements in 2027 and an additional $300 million in 2028.

Dow said roughly two-thirds of the targeted earnings uplift is expected to come from productivity improvements, with the remaining one-third driven by growth.

The goal is “to achieve significant growth and productivity gains that elevate Dow’s competitive position,” said chief operating officer Karen Carter, adding that the programme builds on existing 'self-help measures' to create a more resilient business.

Chair and CEO Jim Fitterling said the initiative would further accelerate efforts to address “prolonged trough and structural industry challenges.”