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Dow Cuts 4,500 Jobs Using AI for Productivity
31 Jan
Summary
- Dow is implementing 'Transform to Outperform' program.
- AI and automation will drive cost savings and growth.
- Company reported a widened quarterly loss of $1.48 billion.
Dow is initiating a major cost-saving program called 'Transform to Outperform,' which will involve eliminating 4,500 jobs. This strategic overhaul aims to simplify the company's operating model by integrating artificial intelligence and automation.
The program is designed to enhance productivity and drive significant growth in operating earnings before interest, depreciation, and amortization. Dow anticipates one-time charges between $1.1 billion and $1.5 billion, primarily for severance costs. These are expected to yield substantial incremental operating EBITDA by 2027 and 2028.
These workforce reductions and restructuring efforts are occurring alongside Dow's recently reported quarterly financial results. The company disclosed a widened net loss of $1.48 billion, or $2.15 per share, a significant increase from the previous year. Sales also experienced a decline of 9.1% year-over-year, impacting overall financial performance.
