Dow Inc., headquartered in Midland, Michigan, revealed plans to cut about 4,500 jobs as it increases its focus on artificial intelligence (AI) and automation within its business operations. The chemicals manufacturer anticipates incurring severance costs estimated between $600 million and $800 million as part of these workforce reductions.
The job cuts are integral to a broader strategy intended to streamline and simplify the company's operational framework. Dow currently employs roughly 34,600 people globally. Following this announcement, its shares declined by 2% in premarket trading.
This marks a continuation of Dow's prior efforts to lower costs and optimize efficiency. In January 2025, Dow executives had set a goal to save $1 billion and planned to cut approximately 1,500 jobs worldwide. Subsequent moves included the July announcement to shut down three European plants, which was expected to eliminate an additional 800 jobs.
Dow's decision comes amidst a wider wave of layoffs in the U.S. corporate landscape during a difficult period for job seekers. For example, Amazon reduced its corporate workforce by about 16,000 roles recently, adding to a previous reduction of 14,000 employees earlier in the year. United Parcel Service (UPS) also indicated plans to eliminate up to 30,000 operational positions throughout the year.
Similarly, Pinterest disclosed job cuts this week, attributing part of the decision to the increased application of AI technologies, demonstrating a trend across various sectors toward automation-driven workforce restructuring.
U.S. workers are increasingly concerned about employment prospects, with economists describing the job market as largely stagnant, characterized by minimal hiring and firing activity. The country’s overall job additions dropped to a modest 50,000 in the most recent month, slightly below the revised figure of 56,000 for November.
Operational expenses have risen alongside layoffs in sectors adapting to changing economic conditions. Corporate leaders cite increased costs—including those stemming from tariffs—as factors, alongside shifts in consumer spending patterns. Consumer confidence in the U.S. economy has fallen to its lowest point since 2014. In response, many companies are reallocating resources toward AI and integrating these technologies through extensive organizational restructuring.