Dow increases layoffs to more than 2,000 as demand for building materials remains weak

MW Dow increases layoffs to more than 2,000 as demand for building materials remains weak

By Tomi Kilgore

Chemicals and plastics company to close three plants in Europe to cut costs, in addition to the $1 billion in cost-saving actions announced in January

Dow Inc.'s cost cuts are deepening, as the chemical and plastics company said Monday it was closing plants and laying off more people in response to continued weak demand.

The announcement comes about three months after the company said it identified three plants in Europe that would require "action," and about six months after the company announced a $1 billion cost-cutting plan in response to a slower-than-expected economy.

The company $(DOW)$ said 800 jobs will be cut in its latest move, in addition to the 1,500 layoffs announced in January. In total, the cuts would represent about 6.1% of Dow's workforce of approximately 36,000 as of Dec. 31.

"Our industry in Europe continues to face difficult market dynamics, as well as a continuing challenging cost and demand landscape," said Chief Executive Jim Fitterling.

In early June, Fitterling had said at an industry conference, according to an AlphaSense transcript, that tariffs on European steel and aluminum - and potential tariffs on automobiles - have "strained" trade relations, and led to a "wait-and-see" order pattern from customers.

He said housing demand "continues to be persistently soft globally,:" leading to slower-than-normal seasonal demand for building and construction materials.

Dow's stock slipped 0.3% in premarket trading. Although it is up 7.5% so far in July, the stock has plunged 51.5% amid a nine-month losing streak.

The company said it would record charges of $630 million to $790 million for the plant closures, which include two in Germany and one in the United Kingdom. The shutdowns are expected to begin in the middle of 2026 and should be completed by the end of 2027.

Dow will start seeing a boost to profitability from the shutdowns in 2026.

The stock has dropped 29.1% in 2025, making it the Materials Select Sector SPDR ETF's XLB worst performing component over that time. The ETF has gained 8.6% this year, while the S&P 500 index SPX has tacked on 6.8%.

-Tomi Kilgore

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July 07, 2025 08:02 ET (12:02 GMT)

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