Dow to Reduce Global Workforce Costs Six Percent
Dow says it is implementing a restructuring program to reduce its global workforce costs by approximately six percent. The chemical giant first announced the plan during its second quarter earnings calls and releases in July. It remains unclear how the reduction will affect the Midland area specifically.
“This program includes a 6% reduction in Dow’s global workforce as well as actions to exit uncompetitive assets. While these are difficult decisions, they are necessary to maintain competitiveness while the economic recovery gains traction,” a press release from Dow’s second quarter earnings in July, reads.
“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 Dow Chairman and Chief Executive Jim Fitterling. “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.”
The Company will record a charge in the third quarter of 2020 for costs associated with the restructuring program activities. In total, these costs are expected to be in the range of $500 million to $600 million and will consist of severance and related benefit costs; costs associated with exit and disposal activities; and asset write-downs and write-offs.
Michael Westendorf is the chairman and executive editor of Chemical City Paper. As Executive Editor, he leads the City Paper’s news coverage and editorial team.