Dow Chemical to Cut About 2,000 jobs—or 5% of Workforce

MIDLAND—Materials science company Dow is cutting about 2,000 jobs, or approximately 5% of its global workforce, as part of an effort to reach $1 billion in cost savings this year.

The Michigan-based company currently employs approximately 37,800 people. It’s unclear how many of its 5,200 employees in the Great Lakes Bay region will be affected by the move; Dow Inc. did not provide specifics.

Most of the layoffs are reportedly expected to be centered on Dow’s operations in Europe.

Company officials said they will take a charge of $550 million to $725 million in the first quarter. This mostly includes severance and related benefit costs; costs related to exit and disposal activities and asset write-downs and write-offs. Dow officails also said they would evaluate assets in Europe.

The company also reported a fourth-quarter profit of $613 million, or 85 cents per share. Its adjusted profit was 46 cents per share, below the 57 cents per share that analysts surveyed by Zacks Investment Research were calling for. Revenue totaled $11.86 billion, missing Wall Street’s estimate of $12.03 billion.

“In the fourth quarter, Team Dow continued to proactively navigate slowing global growth, challenging energy markets, and destocking,” Jim Fitterling, chairman and CEO, said in a statement. “In response, we shifted our focus to cash generation in the quarter as we lowered operating rates, implemented cost-savings measures, and prioritized higher-value products where demand remained resilient.”

‘Gander Editor Kyle Kaminski contributed to this report.