Dow Slashes Thousands of Jobs:Dow intends to terminate approximately 4,500 employees worldwide as it transitions a portion of its operations to focus heavily on the use of AI and automation and as communicated in an announcement on Thursday.
The company has advised that the impact from the upcoming layoffs will incur a severance expense of $600-$800 million, which is included in a much larger initiative to simplify how it operates and reduce operating costs.
Dow is a global company headquartered in Midland, MI with a current headcount of approximately 34,600 employees. This announcement resulted in a 2% decline in the price of Dow Inc, shares prior to the opening of the stock market.
Dow Expands Job Cuts After Earlier Reductions
This is not the first round of layoffs at Dow. In January 2025, company leaders said they were looking to save $1 billion and planned to cut about 1,500 jobs around the world.
Then in July, Dow announced it would close three factories in Europe, leading to the loss of 800 more jobs. The latest announcement shows the company is moving faster and deeper with its cost-cutting plans.
Dow says more automation and AI tools will help the company run more efficiently, even though it means fewer workers.
Layoffs Spread Across Major U.S. Companies
Dow is not alone. Several major companies announced large job cuts this week as businesses pull back on hiring.
Amazon said it would eliminate about 16,000 corporate jobs, just months after cutting another 14,000 roles. UPS also announced plans to cut up to 30,000 operational jobs this year.
Like Dow, Pinterest said it is reducing jobs partly because it is using more AI in its business. Many companies are choosing to spend money on technology instead of expanding their workforce.
Job Anxiety Grows as Hiring Slows
For many Americans, finding a job has become harder. Economists say businesses are stuck in a “no-hire, no-fire” mode, meaning they are not hiring much but also not growing.
The U.S. added 50,000 jobs last month, a decline from 56,000 in November, indicating that job growth is slowing. Additionally, companies face rising costs such as tariff-related expenses under the current administration and changes to consumer spending patterns.
The United States economy is now viewed as less stable than it was in 2014, with many firms reducing their staff and moving funds to implement artificial intelligence and reallocate resources.
What do you believe—will companies’ increased use of AI impact workers’ ability to find employment in the future? Comment below.
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