Dow is implementing a restructuring program to reduce its global workforce costs by approximately 6% and to rationalize certain manufacturing assets.
Dow Inc. recently outlined a series of actions it will take in an effort to achieve structural cost improvement targets as the global economy recovers from the coronavirus pandemic. The company announced during its second quarter earnings on July 23, 2020, that it is implementing a restructuring program to reduce its global workforce costs by approximately 6% and to rationalize certain manufacturing assets. These actions are expected to result in total annualized EBITDA savings of more than $300 million by the end of 2021. Manufacturing asset impacts include:
“Given the expected gradual and uneven global economic recovery from COVID-19, we announced in July that we are taking necessary actions to continue to optimize our asset footprint, reduce structural costs and enhance the competitiveness of our business over the long-term,” said Jim Fitterling, chairman and CEO. “We continue to stay focused on delivering strong cashflow, strengthening our financial profile and maximizing our operational advantages, and we remain well positioned to capture significant growth as market conditions improve.”