Dow aims for US$2 bn earnings expansion until 2028; 4,500 job cuts
US chemical firm Dow Inc. has announced a new strategic transformation plan, "Transform to Outperform," aimed at improving operational earnings (EBITDA) by at least US$2 billion by 2028. As part of this initiative to combat "prolonged trough and structural industry challenges," the company will cut approximately 4,500 jobs, representing about 13% of its 34,600 global workforce.
This restructuring follows a period of weak demand, particularly in the packaging and, industrial, and coating sectors, and is designed to improve competitiveness in a volatile industry environment. The plan supplements a previously announced US$1 billion cost-savings plan.
The company anticipates US$1.1-1.5 billion in one-time costs associated with Transform to Outperform, including US$600-800 million in severance for 4,500 Dow roles and US$500-700 million in other one-time costs.
The company expects US$500 million in EBITDA benefits in 2026, with an additional US$1.2 billion in 2027, and another US$300 million in 2028.
Jim Fitterling, Dow Chair/CEO, said, "By leveraging best-in-class, cross-industry processes and leading-edge technologies, this work will further accelerate measures we have already taken to address the prolonged trough and structural industry challenges. Our efforts will build on Dow's strong focus on safe and reliable operations while driving increased accountability and continuous improvement. This work aims to deliver improved growth, productivity and shareholder returns."
The announcement coincided with the release of Dow's fourth-quarter financial results for 2025, in which the company reported a GAAP net loss of US$1.5 billion, with net sales falling 9% year over year to US$9.5 billion due to declines in local prices and volumes.
For the full year of 2025, Dow posted a GAAP net loss of US$2.4 billion, a sharp reversal from the net income of US$1.2 billion recorded in 2024.
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