Chemicals Maker Dow to Cut 4,500 Jobs, Targets $2 Billion Core Profit Boost

Reuters
Jan 29

Jan 29 (Reuters) - Dow said on Thursday it ​would slash about 4,500 jobs in ‌a sweeping restructuring aimed at boosting profitability by at least $2 billion, as the chemicals maker battles persistent weak demand and industrywide structural ‌pressures.

Shares of the company rose 2.2% ​in premarket trading.

Global chemical companies are being compelled to reassess their strategies in response ‍to stagnant demand, escalating production costs in Europe and increasingly stringent environmental regulations.

Dow, which began a ⁠strategic review of some of its ‍European assets in 2024, has also been reevaluating its ‌ownership ‌of non-product producing assets across its global portfolio, including power and steam production and pipelines.

The company expects to incur about $1.1 ⁠billion to $1.5 billion ⁠in ​one-time costs tied to the restructuring in 2026 and 2027.

The Michigan-based company reported an adjusted loss ‍of 34 cents per share for the quarter ended December 31, compared with analysts' average estimate ​of a loss of ‍46 cents, according to data compiled by LSEG.

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