Dow Inc. announces actions to deliver $1B in cost savings, workforce reductions

Dow Inc. (DOW) announced targeted actions to deliver $1B in cost savings. The proactive actions will further reduce the company’s costs in response to ongoing macroeconomic uncertainty, while reinforcing its long-term competitiveness across the economic cycle. Specifically, Dow expects to achieve the majority of the $1B in cost savings on an annual run-rate through: $500M to $700M reduction in direct costs, primarily focused on purchased services and third-party contract labor; and Decreased labor costs, including through a workforce reduction of approximately 1,500 Dow roles globally. The company will record a charge of $250M to $325M in the first quarter of 2025 for costs associated with these activities, which primarily include severance and related benefit costs, and the costs to implement these actions will be expensed as incurred ranging from $20Mto $30M. “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 Jim Fitterling, Dow chair and CEO. “These cost actions support our commitment to our long-term growth objectives, while aligning spending levels to the realities of the current macroeconomic environment. As 2025 progresses we will continue to evaluate options to reinforce our competitiveness and take further action if necessary.”