Dow has announced targeted actions to deliver USD 1 billion 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 USD 1 billion in cost savings on an annual run-rate through:
- USD 500 to 700 million reduction in direct costs, primarily focused on purchased services and third-party contract labour; and
- Decreased labour costs, including through a workforce reduction of approximately 1,500 Dow roles globally.
“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.”
The Company will record a charge of USD 250 to 325 million 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 USD 20 to 30 million.
As Dow implements the actions announced today, the Company will engage local stakeholders in each region and in compliance with local regulations and consultation processes.