By Rob Curran

Dow is cutting 4,500 employees as part of a cost-saving program that will lean on artificial intelligence to increase productivity and bolster shareholder returns, resulting in $1.1 billion to $1.5 billion in one-time charges.

The chemicals giant said the program, dubbed "Transform to Outperform," would employ artificial-intelligence and automation to reduce expenditure and catalyze growth, productivity, yielding an additional $2 billion in operating earnings before interest, depreciation and amortization.

Dow anticipates booking $600 million to $800 million in severance costs and $500 million to 700 million in other one-time costs associated with Transform to Outperform.

Dow now targets operating EBITDA of $500 million in 2026, with an estimated $800 million to $1 billion in costs to achieve it.

In 2027, Dow said the overhaul would result in $1.2 billion in incremental operating EBITDA, with charges of about $300 million to $500 million. In 2028, the program would add $300 million in operating EBITDA, with no further charges.

"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.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

January 29, 2026 06:35 ET (11:35 GMT)

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