Dow Inc. is cutting 4,500 jobs worldwide as part of a sweeping restructuring initiative that leans heavily on artificial intelligence to improve productivity and deliver higher returns to shareholders. The layoffs, announced Thursday, are part of the company’s new “Transform to Outperform” program aimed at slashing costs, streamlining operations, and pivoting toward AI and automation.
The job cuts will trigger one-time charges of between $1.1 billion and $1.5 billion, Dow revealed in its quarterly earnings report. CEO Jim Fitterling called the move a “radical simplification” of the company’s operating model, with an emphasis on growth through AI-driven efficiency. Dow currently employs around 34,600 people across 29 countries.
This move places Dow among a growing list of corporate giants aggressively restructuring and reducing headcount amid rising adoption of AI. UPS announced plans this week to eliminate 30,000 jobs in 2026, while Amazon said it would lay off 16,000 corporate workers—on top of the 14,000 already cut last fall. These layoffs reflect a wider corporate trend away from traditional labor in favor of machine learning and automation investments.
Despite the cuts, Dow’s adjusted financial performance beat Wall Street’s expectations. The company reported an adjusted loss of 34 cents per share—less than the 50-cent loss analysts had forecast—though its net loss widened significantly to $1.48 billion from just $35 million the year before. Total sales fell 9.1% to $9.46 billion, with packaging and specialty plastics hit hardest, largely due to the idling of a cracker facility serving Europe, the Middle East, and Africa.
Dow believes the “Transform to Outperform” initiative will yield $2 billion in added operating earnings before interest, taxes, depreciation, and amortization. The company is betting that embracing AI now will lead to leaner operations and stronger shareholder returns in the years ahead.
