Dow is Cutting About 2,000 Jobs, or 5 Per Cent of Workforce
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Last Updated: January 26, 2023, 19:25 IST
Materials science company Dow currently employs about 37,800 people.
The layoffs are part of an effort to reach $1 billion in cost savings this year.
Materials science company Dow is cutting about 2,000 jobs, or approximately 5 per cent of its global workforce, as part of an effort to reach USD 1 billion in cost savings this year. The Midland, Michigan-based company currently employs approximately 37,800 people.
Dow Inc. 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 did not provide specifics but said it would evaluate assets with a focus on Europe.
The company also reported a fourth-quarter profit of USD 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 totalled USD 11.86 billion, missing Wall Street’s estimate of USD 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." Shares fell 5.3 per cent before the market open.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
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