NEW YORK (Fox Business) - Dow Inc. will eliminate 2,000 jobs worldwide as part of a corporate restructuring plan to secure $1 billion in cost savings in 2023, the company said on Thursday.
The Michigan-based materials science company said the shakeup was necessary amid ‘near-term macroeconomic uncertainty’.
Dow is also shutting down select assets and further evaluating its global asset base while focusing on Europe “to ensure long-term competitiveness and enhance cost efficiency,” according to the company.
“We are taking these actions to further optimize our cost structure and prioritize business operations toward our most competitive, cost-advantaged and growth-oriented markets, while also navigating macro uncertainties and challenging energy markets, particularly in Europe,” Dow CEO Jim Fitterling said.
“We remain committed to capitalizing on our long-term growth opportunities in a disciplined and balanced manner, and these actions further position us to advance our decarbonize and grow strategy and strengthen our competitive position,” he added.
The restructuring plan will allocate $500 million for structural improvements and $500 million in operating expense reductions with an emphasis on near-term cash flow.