Dow to cut about 4,500 jobs as emphasis shifts to AI and automation

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Dow is planning to cut approximately 4,500 jobs as the chemicals maker puts more emphasis on using artificial intelligence and automation in its business.

The company said Thursday that it anticipates about $600 million to $800 million in severance costs related to the cuts. Those costs are part of a broader plan aimed at simplifying operations and streamlining.

Shares of Dow Inc., which has about 34,600 employees globally, fell 2% before the market opened. Dow is based in Midland, Michigan.

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There have been thousands of job cuts announced this week after a frustrating year for U.S. job seekers.

Amazon slashed about 16,000 corporate roles on Wednesday — just three months after laying off another 14,000 workers. And United Parcel Service said on Tuesday that it plans to cut up to 30,000 operational jobs this year.

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Americans are feeling increasingly anxious about the odds of finding a job, or getting a better one. Economists have said that businesses are largely at a “no-hire, no fire” standstill. Hiring has stagnated overall — with the country adding a meager 50,000 jobs last month, down from a revised figure of 56,000 in November.

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Consumer expectations for the U.S. economy has plummeted to its lowest level since 2014. That is occurring as some businesses reduce their workforces as they redirect money toward artificial intelligence, often baked into wider corporate restructuring.

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"Dow employs about 7,000 people at its site and also uses another 4,500 hundred contractors in the vicinity," said Andrew Lipow, President of Lipow Oil Associates Consulting Firm. "The loss of a significant number of jobs is going to be a big impact."

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While specifics of how and where the layoffs will occur are unknown, the news isn't good for small business owners in Freeport.

"I know a lot of people who work at Dow," said Ivan Isais, owner of Stay Faded King's Barbershop. "I hope they're safe. Dow brings a lot of customers to us."

FOX 26 spoke to Freeport Mayor Jerry Cain. He told us, "We have not received info on the specific impacts on Freeport. We will continue to monitor the situation."

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