MIDLAND, MI – Thousands of Dow employees are expected to lose their jobs as the Midland-based chemical company looks to further streamline its operations and increase profitability.
The company announced its plans to cut 4,500 jobs in a news release on Thursday, Jan. 29. It’s unclear how the cuts will affect Dow’s Michigan workforce.
The announcement comes as the company looks to increase its focus on the use of artificial intelligence and automation. Additionally, Dow plans to reset its cost structure and contemporize its customer service.
“By leveraging best-in-class, cross-industry processes and leading-edge technologies, this work will further accelerate measures we have already taken to address the prolonged trough and structural industry challenges,” Jim Fitterling, Dow chair and CEO, said in a statement. “Our efforts will build on Dow’s strong focus on safe and reliable operations while driving increased accountability and continuous improvement. This work aims to deliver improved growth, productivity and shareholder returns.”
The planned job cuts are also the latest for Dow, which announced plans to layoff 1,500 employees a year ago. The company has a total of about 34,600 employees globally.
The job cuts and other planned changes announced by Dow this week are part of a broader company initiative, Transform to Outperform, through which the company aims to add at least $2 billion in near-term Operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a metric used to measure profitability.
The initiative is expected to cost a total of $1.1-1.5 billion. This total includes anticipated severance costs of between $600 million and $800 million.
“The goal of Transform to Outperform is to achieve significant growth and productivity gains that elevate Dow’s competitive position,” Karen S. Carter, Dow’s chief operating officer, said in a statement. “We are building on the momentum of our current self-help measures – transforming Dow into a company that is more resilient, consistently delivers growth, enables customer success, and delivers greater shareholder value across the cycle.”
According to Dow’s 2025 fourth quarter earnings report, the company’s net sales were down 9% for a total of $9.5 billion. The company also saw a net loss of $1.5 billion in the same quarter.
Dow will work with local stakeholders across each of its regions while complying with local regulations and consultation processes, according to the company.