Dow to Eliminate 2,000 Jobs Worldwide

Dow Inc. is a publicly traded company with a history dating back to 1897. The company is involved in a variety of businesses, including chemicals, plastics, and agriculture. Dow Inc. is headquartered in Midland, Michigan.
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About 2,000 employees are being laid off globally as job cuts spread to other parts of the economy. So far, the cuts have been concentrated in the technology sector.
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The chemicals company said it is targeting $1 billion in cost cuts this year as slowing economic growth and a drop-off in demand weigh on sales.
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Dow announced that it is shutting down certain assets and looking to align spending with the macroeconomic environment. The company said it expects to book a charge of $550 million to $725 million in the first quarter for costs associated with the cost-cutting moves.
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Jim Fitterling, the company's chief executive, said that it is optimizing its cost structure in light of macroeconomic uncertainties and "challenging energy markets, particularly in Europe."
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Dow shares fell more than 3% to $56.00 in the premarket session.
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After manufacturing conglomerate 3M Co. said earlier this week that it was cutting 2,500 jobs globally, Dow has announced its own layoffs. Both companies are facing weakening demand.
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A number of technology companies are cutting thousands of jobs as they adjust to the new reality after experiencing rapid growth at the start of the Covid-19 pandemic.

On Wednesday, International Business Machines Corp. announced it would cut 3,900 jobs, while software company SAP SE said on Thursday that it would shed 3,000 positions.
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Dow's fourth quarter results fell short of expectations Thursday, with revenue dropping 17% to $11.86 billion. The company attributed the decline to slowing economic growth and customers reducing inventory.
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The company's fourth-quarter profit fell to 85 cents a share, from $2.32 a share a year earlier. Adjusted earnings for the quarter missed estimates by a penny.
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"We are seeing some positive signs from moderating inflation in the U.S., improving outlook for energy in Europe, and reopening in China," Mr. Fitterling said. "However, we are still being prudent and proactive."
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Dow stated that it is targeting $500 million in structural improvements and another $500 million in operating cost reductions. The company mentioned that it would look to reduce costs associated with purchasing raw materials, logistics and utilities.