Dow announced targeted actions to deliver $1 billion in cost savings. The proactive actions will further reduce the Company's costs in response to ongoing macroeconomic uncertainty, according to Dow.
Specifically, Dow expects to achieve the majority of the $1 billion in cost savings on an annual run-rate through:
- $500 million to $700 million reduction in direct costs, primarily focused on purchased services and third-party contract labor; and
- Decreased labor 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 Fitterlingopens in a new tab, 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 $250 million 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 $20 million to $30 million.
