Dow cuts 4,500 jobs as automation and AI expand

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US CHEMICALS giant Dow will cut 4,500 jobs, around 13% of its workforce, as part of a restructuring programme that will increase the use of automation and AI across its operations.

The company, which employs close to 35,000 people across 29 countries, said the cuts form part of its Transform to Outperform programme, which aims to simplify and streamline internal processes at a cost of up to US$1.5bn between 2026 and 2027. This includes US$600–800m in severance payouts.

Dow chief operating officer Karen S Carter said: “We are building on the momentum of our current self-help measures – transforming Dow into a company that is more resilient, consistently delivers growth, enables customer success and delivers greater shareholder value across the cycle.”

Chemical competitiveness

Dow has shut down several plants in Europe in the past year, including a basic siloxanes plant in Wales which saw the loss of 220 jobs.

Since January 2025, the company has implemented a cost-saving plan expected to deliver up to US$1bn.

The increased use of AI and automation forms part of Dow’s efforts to remain competitive in an increasingly volatile global chemicals market, where China now accounts for around 45% of total sales.

Dow reported a nearly 10% year-on-year decline in sales in Q4 2025, attributing the drop to weak demand.

Dow CEO Jim Fittering said: “By leveraging best-in-class, cross-industry processes and leading-edge technologies, this work will further accelerate measures we have already taken to address the prolonged trough and structural industry challenges.”