Dow Plans 2,000 Job Cuts Under Plan to Save $1 Billion in Costs

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Dow Inc. plans to cut about 2,000 jobs as the chemical maker seeks $1 billion in cost savings and confronts higher energy costs and a slowing economy.The company said it will shut down certain operations, “particularly in Europe” in response to the challenges. Dow is also reducing purchases of raw materials and seeking to cut logistics and utilities costs, according to a statement Thursday.

Among other things, the maker of plastics, chemicals and agricultural products cited high energy costs in Europe, where gas and electricity prices surged in the wake of Russia’s invasion of Ukraine. The company said it will take a charge of $550 million to $725 million in the first quarter related to the measures.

Dow shares fell 7.3% in premarket US trading.

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The moves add to a growing wave of corporate job cuts that started with technology companies and has spread to other sectors. Software maker SAP SE said Thursday that it plans about 3,000 job cuts this year.

Dow’s European headquarters is in Horgen, Switzerland, and the company has 37 manufacturing sites across 15 countries in the Europe, Middle East and Africa region, according to its website.

As of the end of 2021, Dow said it had about 35,700 full-time employees.