Dow Inc. will cut about 4,500 jobs worldwide as the US chemicals group accelerates the use of artificial intelligence and automation to simplify operations and cut costs.
The company said the reductions would trigger $600m to $800m in severance charges, part of a broader restructuring aimed at streamlining its global footprint. The Associated Press reported the announcement on Thursday.
Dow, which employs around 34,600 people globally, said the job losses mark an intensification of cost-cutting efforts first outlined last year. Shares in the Midland, Michigan-based company fell about 2% in pre-market trading, according to market data cited by Reuters.
The cuts follow earlier measures. In January 2025, Dow executives said the group was targeting $1bn in cost savings, including roughly 1,500 job cuts. In July, the company announced the closure of three European plants, eliminating a further 800 roles, Reuters reported at the time.
Management has framed the latest reductions as part of a strategic shift rather than a cyclical response. Dow said greater deployment of automation, data analytics and AI-driven processes would allow it to operate with a leaner workforce while maintaining output and safety standards.
The move places Dow among a growing list of large employers paring headcount as technology adoption accelerates. According to the Wall Street Journal, companies across sectors are increasingly using AI to redesign workflows, reduce manual tasks and flatten organisational structures.
This week alone has seen a fresh wave of high-profile job cuts. Amazon said it would eliminate about 16,000 corporate roles, while United Parcel Service announced plans to cut up to 30,000 operational jobs this year. Pinterest also confirmed workforce reductions, citing efficiency gains from AI, Reuters reported.
Economists say the layoffs reflect a broader cooling in hiring rather than an outright collapse in labour demand. US job growth has slowed sharply in recent months, with businesses adopting a “no-hire, no-fire” stance as they assess economic conditions, according to analysts quoted by the Associated Press.
For Dow, the restructuring comes against a backdrop of rising operational costs, pressure on chemical demand, and heightened uncertainty around global trade and tariffs. Company executives have said capital is increasingly being redirected towards digital tools and automation that promise long-term productivity gains.
The job cuts are expected to roll out over the coming months, with further details on affected functions and geographies to be disclosed alongside upcoming earnings. Investors will be watching closely to see whether the savings translate into improved margins as Dow reshapes its workforce for a more automated future.