Dow Chemical to slash 3 percent of workforce

Midland, Michigan — Dow Chemical Co. said it will cut between 1,500 and 1,750 jobs, or 3 percent of its global work force, to streamline the organisation further and optimise its footprint as a result of a $5 billion (€4.51 billion) divestment of most of its chlorine business, it said in a 4 May news release.

Dow said it is shifting its portfolio toward targeted, integrated high-value markets. The firm said it will make additional minor adjustments to asset its footprint to enhance competitiveness.

The company will take charges of about $330 to $380 million in the second quarter for asset impairments, severance and other costs related to these measures, which are expected to be completed during the next two years.

Dow said its actions are expected to result in about $300 million of annual operating cost savings.

Minor asset footprint adjustments will be made to select manufacturing facilities that represent less than 1 percent of the firm’s net property value. Dow said these include minor consolidation and shutdowns in response to changing market dynamics and to position the relevant businesses for long-term growth.

Dow reported sales of $58 billion in 2014 with 53,000 employees in about 180 countries worldwide. It operates 201 manufacturing sites in 35 countries.