Cost-saving measures: Dow cuts 2000 jobs

Dow has outlined a series of targeted actions aligned to its previously stated plan to achieve aproximately EUR 0,92 billion in cost savings in 2023.

A graphic shows silhouettes of people in front of an economic balance sheet.
Dow plans global job cuts and the closure of selected plants. Image source: geralt - Pixabay (symbol image).

The proactive actions are intended to optimise the company’s cost structure in response to near-term macroeconomic uncertainty, while maintaining its long-term competitiveness across the economic cycle.

Specifically, Dow expects to realise aproximately EUR 0,92 billion (USD 1 billion) in cost savings in 2023 through:

“Structural improvements” of around 459 million EUR (USD 500 million), maintaining a low cost-to-serve operating model:

  • Optimising labour and services costs, including a global workforce reduction of approximately 2,000 roles;
  • Shutting down select assets, while further evaluating Dow’s global asset base, particularly in Europe, to ensure long-term competitiveness and enhance cost efficiency; and
  • Increasing productivity via end-to-end process improvements.

“Operating expense reductions” of 459 million EUR (USD 500 million), focused on near-term cash flow:

  • Decreasing turnaround spending, with a continued focus on maintaining safety and reliability;
  • Reducing purchased raw materials, logistics and utilities costs; and
  • Aligning spending levels to the macroeconomic environment.

Hersteller zu diesem Thema

This could also be interesting for you!