Dow Announces Restructuring Program

The Dow Chemical Co. recently announced a restructuring program designed to accelerate cost reduction actions. These actions will reportedly result in a net reduction of approximately 2,400 positions, or 5% of the global workforce. The restructuring also includes the shutdown of approximately 20 manufacturing facilities.

Once fully implemented, these actions are expected to result in approximately $500 million of annual operating cost savings by the end of 2014. In addition, Dow plans to further reduce capital spending and investments for targeted growth programs that are no longer a priority in this environment. These measures are expected to deliver an additional $500 million cash impact. Taken together with the $1.5 billion of measures Dow has already initiated, this will bring the company’s stated cumulative intervention goal to $2.5 billion.