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.
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.
