Dow layoffs: Chemicals maker to slash 4,500 jobs amid sluggish demand — here’s what we know
Chemicals maker Dow announced it will cut nearly 4,500 positions, or 13% of the company’s total workforce, as part of a sweeping restructuring aimed at boosting profitability by at least $2 billion. Reuters reported.
The company also forecast first-quarter revenue to be below market expectations, citing weak demand conditions that continue to weigh on sales.
The layoff announcement comes at a time when many global chemical manufacturers are re-evaluating their strategies amid stagnant demand, rising production costs in Europe, changing regulatory requirements and ongoing oversupply around the world.
The company’s shares fell about 3% in premarket trading Thursday; This reflects investors’ concerns about the company’s soft demand outlook and cautious earnings forecast.
Dow examines ownership of non-core assets worldwide
Dow, which began a strategic review of some European assets in 2024, is also reassessing its ownership of non-core assets in its global portfolio, including power and steam generation and pipelines.
In 2025, the company completed the sale of a 40% stake in some of its US Gulf Coast infrastructure assets to a fund managed by Macquarie Asset Management for $2.4 billion so it could continue to focus more on its chemicals business. It then sold additional shares worth $540 million in September last year.
“In 2025, we have achieved more than half of our short-term cash and cost support actions of more than $6.5 billion, including accelerated delivery of more than $400 million in cost savings from our $1 billion program,” CEO Jim Fitterling was quoted as saying in a statement to the news agency.
Dow operates manufacturing facilities in 29 countries and employs approximately 34,600 people. One-time costs for the restructuring plan are expected to be approximately $1.1 billion to $1.5 billion in 2026 and 2027.
Income expectations
Dow said in its latest report that it expects first-quarter net sales to be $9.4 billion, below analysts’ average estimate of $10.33 billion, based on data compiled by LSEG.
Meanwhile, net sales in the company’s largest business segment, packaging and specialty plastics, fell 10.7% to $4.74 billion in the fourth quarter ended Dec. 31 compared with the previous year, primarily due to lower polymer prices. Reuters reported.
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, according to the agency’s report.
