Dow plans to cut 2,000 jobs
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The reduction is part the chemical maker's plan to save $1 billion in costs in 2023.
Chemical maker Dow Inc. has announced plans to cut 2,000 jobs from its workforce as part of a plan to save US$1 billion in costs this year.
In a Jan. 26 news release, the Midland, Mich.-based company said the job cuts will “further optimize [its] cost structure in response to near-term macroeconomic uncertainty, while maintaining its long-term competitiveness across the economic cycle.”
The job cuts are part of $500 million in structural improvements that also includes “shutting down select assets, while further evaluating [our] global asset base, particularly in Europe, to ensure long-term competitiveness.”
Dow also plans to trim US$500 million in operating expenses, which will include decreasing turnaround spending, reducing purchased raw materials, logistics and utilities costs, and aligning spending levels to the macroeconomic environment.
“We are taking these actions to further optimize our cost structure and prioritize business operations toward our most competitive, cost-advantaged and growth-oriented markets, while also navigating macro uncertainties and challenging energy markets, particularly in Europe,” Dow chairman and CEO Jim Fitterling said in the release. “We remains committed to capitalizing on our long-term growth opportunities in a disciplined and balanced manner…these actions further position us to advance our ‘Decarbonize and Grow’ strategy and strengthen our competitive position.”
Dow said it will record a charge of US$550 million to US$725 million in the first quarter of 2023 for costs associated with these moves. Those costs primarily include severance and related benefit costs; costs associated with exits and disposals; and asset write-downs and write-offs.
Dow operates manufacturing sites in 31 countries and employs approximately 37,800 people.
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