Dow outlines cost savings measures

Dow has outlined what it described as “a series of targeted actions aligned to its previously stated plan to achieve $1 billion in cost savings in 2023”. This is divided into $500 million each of ‘structural improvements’ and operating expense reductions. The measures include:

* About 2,000 job cuts to reduce labour and services costs

* Shutting down select assets, while further evaluating the asset base, particularly in Europe

* Increasing productivity via end-to-end process improvements

* Decreasing turnaround spending, with a continued focus on maintaining safety and reliability

* Reducing purchased raw materials, logistics and utilities costs

* Aligning spending levels to the macroeconomic environment

“We are taking these actions to further optimise our cost structure and prioritize business operations toward our most competitive, cost-advantaged and growth-oriented markets, while also navigating macro uncertainties and challenging energy markets, particularly in Europe,” said Jim Fitterling, chairman and CEO (pictured). Dow will record a charge of $550-725 million in Q1 for costs associated with these activities. These will mainly comprise severance and related benefit costs; costs associated with exit and disposal activities; and asset write-downs and write-offs.