Due to rising energy costs, weaker demand, and supply chain interruptions, chemical juggernaut Dow Inc. failed Wall Street expectations for fourth-quarter results on Thursday and announced it will lose approximately 2,000 positions, or about 5% of its workforce.
Following Russia’s invasion of Ukraine, production prices have increased recently, and China’s Covid-led lockdowns have reduced demand for Dow’s chemicals, which are sold to sectors like electronics, food packaging, and automotives that are also experiencing supply chain disruptions.
By cutting operating expenses by $500 million, Dow stated it will save $1 billion in costs by 2023. It declared that it would close down assets and assess its global asset base more thoroughly, notably in Europe.
The business would enter a $550 charge.
Source (CNBC)
