Chemical maker Dow is cutting 4,500 jobs, will rely on AI

Chemical shaper Dow Inc. is the latest institution to denote important layoffs arsenic it pivots to a stronger reliance connected artificial quality and automation.

The company, connected Thursday, announced it would chopped 4,500 jobs arsenic portion of a streamlining cognition it calls "Transform to Outperform." The cuts volition supply a $2 cardinal boost successful near-term revenue, the institution said, but volition bring with them betwixt $1.1 cardinal and $1.5 cardinal successful one-time costs, including severance and different costs.

The moves correspond astir 12% of the company's workforce. Dow had 36,000 employees arsenic of December 2024, according to Bloomberg.

"The extremity of Transform to Outperform is to execute important maturation and productivity gains that elevate Dow's competitory position," said Karen S. Carter, Dow's main operating officer, successful a statement. "We are gathering connected the momentum of our existent self-help measures – transforming Dow into a institution that is much resilient, consistently delivers growth, enables lawsuit success, and delivers greater shareholder worth crossed the cycle."

Shares of the institution were up astir 3% successful pre-market trading.

Dow, similar different chemic companies, has seen request flatten successful caller years, on with stricter regulations and higher accumulation costs. In its astir caller earnings, which were besides announced Thursday morning, the institution reported an adjusted nonaccomplishment ‍of 34 cents per share, beating analysts' expectations ​of a ‍46 cent loss. The institution credited “self-help measures” for the beat.

Dow joins a increasing fig of companies that are shrinking their workforce. Pinterest, earlier this week, announced plans to trim its workforce by 15% and Amazon, connected Wednesday, said it would chopped 16,000 jobs, arsenic it pushed AI and efficiency.