Dow to cut 1,500 jobs globally after fourth-quarter loss

(Sharecast News) - Dow announced plans to cut around 1,500 jobs globally as part of a broader cost-reduction initiative aimed at saving $1bn on Thursday.

The Michigan-based industrial firm said the restructuring came in response to ongoing macroeconomic challenges and weaker-than-expected demand in key markets, including packaging and specialty plastics.

It said it would achieve the majority of the savings through $500m to $700m in direct cost reductions, primarily by cutting purchased services and third-party contract labour.

The workforce reduction followed a similar cost-cutting initiative in 2023, when Dow eliminated 2,000 jobs to address economic uncertainty.

As part of the restructuring, Dow said it expected to incur charges of $250m to $325m in the first quarter of 2025, covering severance and related benefits.

Additional implementation costs of $20m to $30m would be recorded as they occur.

The job cuts came as Dow reported a fourth-quarter net loss of $435m, or eight cents per share, narrowing from a $95m loss in the same period a year earlier.

Excluding one-time items, earnings were breakeven, falling short of analysts' expectations of 24cents per share.

Revenue declined to $10.4bn from $10.6bn, missing Wall Street estimates, with sales pressured by weak demand for performance materials and coatings.

Dow chief executive officer Jim Fitterling cited a persistently slow macroeconomic recovery as a key factor in the company's decision to reduce costs.

"These cost actions support our commitment to our long-term growth objectives, while aligning spending levels to the realities of the current macroeconomic environment," he said.

"As 2025 progresses we will continue to evaluate options to reinforce our competitiveness and take further action if necessary."

At 0736 EST (1236 GMT), shares in Dow were down 2.56% in premarket trading in New York, at $40.00.

Reporting by Josh White for Sharecast.com.