On January 30, Dow Chemical announced targeted actions to cut costs by $1 billion, including laying off 1,500 employees. On the same day, Dow also released its fiscal 2024 performance data.
Dow stated that this initiative will further reduce the company's costs to address the current macro - economic uncertainties and enhance its long - term competitiveness throughout the economic cycle.
Specifically, Dow will achieve the $1 - billion cost savings through two efforts. First, it aims to reduce direct costs by $500 million to $700 million, mainly focusing on purchased services and third - party contract workers. Second, it will cut labor costs, including reducing approximately 1,500 positions globally.
"Although these decisions are difficult, we must continue to take proactive actions to reduce costs in response to the current macro - economic recovery that is below expectations," said Jim Fitterling, Chairman and CEO of Dow. He added that the company will continue to evaluate options to enhance competitiveness and take further actions if necessary.
Currently, Dow has manufacturing bases in 30 countries and regions and employs approximately 36,000 people. The financial data released on that day showed that in 2024, sales were approximately $43 billion, a 3% year - on - year decrease; GAAP net profit was $1.2 billion, higher than the $660 million in 2023; and operating earnings before interest and taxes was $2.6 billion, lower than the $2.8 billion in the previous fiscal year.
