Dow will eliminate approximately 4,500 positions as part of a restructuring initiative aimed at generating at least $2 billion in near-term operational earnings improvements through streamlined processes, artificial intelligence adoption and cost reductions.
The chemical manufacturer announced Transform to Outperform on Jan. 29, targeting the changes over a three-year period ending in 2028. The company expects to spend $1.1 billion to $1.5 billion in one-time costs, including $600 million to $800 million in severance expenses.
“The goal of Transform to Outperform is to achieve significant growth and productivity gains that elevate Dow’s competitive position,” said Karen S. Carter, Dow’s chief operating officer. “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.”
Phased implementation
Dow projects approximately two-thirds of the financial benefits will come from productivity improvements and one-third from growth initiatives. The company plans to deliver $500 million in operational EBITDA in 2026, $1.2 billion in incremental benefits in 2027, and an additional $300 million in 2028.
The implementation costs are front-loaded, with $800 million to $1 billion expected in 2026, $300 million to $500 million in 2027, and no additional costs in 2028.
A dedicated internal team will manage the transformation, which focuses on simplifying the company’s operating model and modernizing customer service approaches, according to the company.
AI and automation focus
The program will use AI and automation technologies to change productivity and growth operations, according to the company. Dow said the changes build on existing cost-saving measures addressing what it described as prolonged market challenges and structural industry issues.
“Transform to Outperform will drive significant simplification in how work gets done, aimed at ensuring Dow’s continued global leadership,” said Jim Fitterling, Dow chair and CEO. “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. Our efforts will build on Dow’s strong focus on safe and reliable operations while driving increased accountability and continuous improvement. This work aims to deliver improved growth, productivity and shareholder returns.”
The company said it will engage local stakeholders in each region and comply with local regulations and consultation processes during implementation.
About Dow
Dow operates manufacturing sites in 29 countries and employs approximately 34,600 people. The company reported sales of approximately $40 billion in 2025.
