Cost-saving measures: Dow cuts 2000 jobs
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.