Dow to cut 2,000 jobs, plans to save $1B in costs
Materials science company implementing restructuring plan to navigate economic uncertainties
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Dow Inc. will eliminate 2,000 jobs worldwide as part of a corporate restructuring plan to secure $1 billion in cost savings in 2023, the company said on Thursday.
The Michigan-based materials science company said the shakeup was necessary amid ‘near-term macroeconomic uncertainty’.
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Dow is also shutting down select assets and further evaluating its global asset base while focusing on Europe "to ensure long-term competitiveness and enhance cost efficiency," according to the company.
"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 CEO Jim Fitterling said.
The Dow Chemical Co. logo is displayed on the exterior of an office building in Midland, Michigan, U.S., on Wednesday, Dec. 9, 2015. (Photographer: Jeff Kowalsky/Bloomberg via Getty Images) (Photographer: Jeff Kowalsky/Bloomberg via Getty Images / Getty Images)
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"We remain committed to capitalizing on our long-term growth opportunities in a disciplined and balanced manner, and these actions further position us to advance our decarbonize and grow strategy and strengthen our competitive position," he added.
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The restructuring plan will allocate $500 million for structural improvements and $500 million in operating expense reductions with an emphasis on near-term cash flow.