MIDLAND, Mich. (WJRT) – Dow is planning to cut 1,500 jobs globally as part of a plan to eliminate $1 billion worth of spending, according to information released Thursday morning.
Dow says the plan is a reaction to “ongoing macroeconomic uncertainty” and a step toward remaining competitive in the marketplace long term.
The company is planning to cut about $500 million to $700 million mostly from purchased services and contracted employees. Another 1,500 job cuts are planned from Dow’s global workforce.
Dow did not say how many job and spending cuts are likely from its Michigan operations, which are based in Midland. The company currently employs around 36,000 people in 30 countries around the world.
“While these decisions are difficult, we must continue to take proactive actions to reduce costs while we navigate through this ongoing slower-than-expected macroeconomic recovery,” said Dow Chairman and CEO Jim Fitterling.
Dow expects to spend more than $250 million by the end of March on restructuring costs, including severance pay and benefits for employees who will be laid off.
“These cost actions support our commitment to our long-term growth objectives, while aligning spending levels to the realities of the current macroeconomic environment,” Fitterling said.
He indicated that more action to “reinforce our competitiveness” is possible later this year depending on how the global economy and Dow’s business fares.
Dow reported sales of nearly $43 billion in 2024.