Dow announces targeted actions to deliver $1B in cost savings

Core Viewpoint - Dow Inc. has announced targeted actions to achieve $1 billion in cost savings in response to ongoing macroeconomic uncertainty, aiming to enhance long-term competitiveness [1][5]. Cost Savings Strategy - The majority of the $1 billion in cost savings is expected to come from a reduction in direct costs, primarily focusing on purchased services and third-party contract labor, with a projected reduction of $500 million to $700 million [6]. - The company plans to reduce labor costs, including a workforce reduction of approximately 1,500 roles globally [6]. Financial Impact - Dow will incur a charge of $250 million to $325 million in the first quarter of 2025 for costs associated with these actions, which include severance and related benefits [1]. - The costs to implement these actions will be expensed as incurred, estimated to range from $20 million to $30 million [1]. Company Overview - Dow is a leading materials science company with a focus on high-growth markets such as packaging, infrastructure, mobility, and consumer applications, delivering sales of approximately $43 billion in 2024 [3]. - The company operates manufacturing sites in 30 countries and employs around 36,000 people [3].