Dow Inc. reported a net loss of $53 million for the fourth quarter of 2024, translating to a loss of 8 cents per share, which fell short of analyst estimates of 23 cents per share. The company's revenue for the period was $10.41 billion, also missing Street forecasts of $10.43 billion. This financial performance reflects persistently weak macroeconomic conditions.
In response to these challenges, Dow announced a significant cost reduction plan, including the elimination of approximately 1,500 jobs globally, representing about 4% of its workforce. This is part of a broader initiative to cut $1 billion in costs. This new program builds upon a previous $1 billion cost reduction program initiated in 2023, which involved approximately 2,000 job cuts.
Combined, these cost reduction programs will result in a nearly 10% reduction in Dow's workforce compared to year-end 2022. The company emphasized that these decisive actions are necessary to restore profitability and enhance competitiveness in a challenging market environment. The layoffs and cost-cutting measures are aimed at streamlining operations and improving financial resilience.
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