Dow Chemical announces massive cost reduction plan, cutting 1500 jobs to cut $1 billion in costs

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Dow Chemical announced plans to cut costs by 1500 employees and $1 billion in cost cuts, while releasing 2024 fiscal year results.

Dow Chemical, the world's leading chemical company, recently announced a major cost reduction plan aimed at cutting costs by $1 billion through a series of measures. This decision was officially announced on January 30, and Dow also released its 2024 fiscal year performance data.

In the face of the current macroeconomic uncertainty, Dow Chemical decided to take targeted actions to enhance its long-term competitiveness. The cost reduction plan includes two main aspects: one is the reduction of direct costs, which is expected to reduce the purchase of services and third-party contractors by 0.5 billion to 0.7 billion US dollars; the other is the reduction of labor costs, which involves the reduction of approximately 1500 jobs worldwide.

Jim Fitterling, Chairman and CEO of Dow, said: "Although these decisions are very difficult for us, we must actively respond to the current lower-than-expected macroeconomic recovery process and maintain the company's steady development by reducing costs." He emphasized that Dow will continue to evaluate various options to enhance competitiveness and take further actions when necessary.

In terms of manufacturing layout, Dow Chemical currently has manufacturing bases in 30 countries and regions around the world, with about 36000 employees. However, in order to cope with the economic challenges, companies have had to make difficult layoff decisions.

According to Dow's fiscal year 2024 results, the company's sales were about $43 billion billion, down 3% from a year earlier. Despite the decline in sales, the company's GAAP net profit reached $1.2 billion, up from $0.66 billion in the previous fiscal year. However, operating EBIT was $2.6 billion, down slightly from $2.8 billion in the previous fiscal year.

The implementation of this cost reduction plan will undoubtedly have a profound impact on the future development of Dow Chemical. By cutting costs and optimizing its structure, Dow is expected to remain robust amid economic uncertainty and lay a solid foundation for its long-term growth. At the same time, the company will continue to explore new growth opportunities to further enhance its market competitiveness.

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