Dow to cut 4,500 jobs, forecasts weak revenue amid sluggish demand

Jan 29 (Reuters) – Dow will slash about 4,500 jobs, or 13% of its total workforce, under a sweeping restructuring aimed at boosting profitability by at least $2 billion, while projecting first-quarter revenue below expectations on stubbornly weak demand.

Shares of the company fell 5.8% in morning trading on Thursday.

The job cuts will also reduce third-party roles and resources, executives said on a post-earnings call, as the company streamlines all its end-to-end work processes by using automation and AI to lower costs and improve efficiency.

Global chemical producers are reassessing their strategies amid stagnant demand, rising production costs in Europe, changing regulatory requirements and persistent global oversupply.

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

CEO Jim Fitterling said the company expects to deliver by the end of the year the remaining more than $500 million in cost savings from its previously announced $1 billion program.

Dow, which operates manufacturing sites in 29 countries and employs about 34,600 people, expects to incur about $1.1 billion to $1.5 billion in one-time costs tied to the restructuring in 2026 and 2027.

The company did not detail which business units or sites will be affected by the planned job reductions.

DOWNBEAT REVENUE EXPECTATIONS

The company forecast first-quarter net sales of $9.4 billion, below analysts’ average estimate of $10.33 billion, according to data compiled by LSEG.

Dow said modest seasonal demand improvements and benefits from cost controls during the quarter could be offset by planned maintenance and continued downward pressure, especially in the building and construction market.

The Michigan-based company reported a smaller-than-expected adjusted loss of 34 cents per share, compared with analysts’ average estimate of a loss of 46 cents.

(Reporting by Pooja Menon in Bengaluru; Editing by Sriraj Kalluvila)