(RTTNews) - Dow Inc. (DOW) announced Thursday targeted proactive actions to deliver $1 billion in cost savings on an annual run-rate in response to ongoing macroeconomic uncertainty, while reinforcing its long-term competitiveness across the economic cycle.
The majority of the $1 billion in cost savings are expected to come through $500 million to $700 million reduction in direct costs, primarily focused on purchased services and third-party contract labor.
It will also come from decreased labor costs, including through a workforce reduction of approximately 1,500 Dow roles globally.
The Company said it will record a charge of $250 million to $325 million in the first quarter of 2025 for costs associated with these activities, which primarily include severance and related benefit costs.
The costs to implement these actions will be expensed as incurred ranging from $20 million to $30 million.
As Dow implements these actions, the Company will engage local stakeholders in each region and in compliance with local regulations and consultation processes.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
