Dow Inc. to slash nearly 4,500 jobs as it shifts focus to AI and automation

Dow Inc. plans to reduce its workforce by approximately 4,500 positions as the company increases its focus on implementing artificial intelligence and automation, The Associated Press has reported.

On Thursday, the company stated it expects severance costs related to the reductions to be between $600 million and $800 million. These costs are included in a broader initiative to simplify operations and improve efficiency.

Shares of Dow Inc., which employs roughly 34,600 people worldwide, declined 2% in pre-market trading. The company is headquartered in Midland, Michigan.

In January 2025, Dow executives indicated the company was targeting $1 billion in cost savings and expected to cut about 1,500 jobs globally. In July, it announced the closure of three European plants, which would eliminate 800 positions.

There is growing concern among Americans regarding job availability and career advancement. Economists note that many businesses are in a period of limited hiring and layoffs. Overall hiring has slowed, with the country adding 50,000 jobs last month, a decrease from a revised figure of 56,000 in November.

Increased operational expenses have coincided with workforce reductions in certain industries. Business leaders attribute these rising costs to factors such as tariffs implemented during the Trump administration, alongside changes in consumer spending.

Consumer confidence in the U.S. economy has fallen to its lowest point since 2014. This decline coincides with some companies reducing staff as they allocate resources toward artificial intelligence, often as part of broader organizational restructuring.