Dow Chemical Company is expected to cut 2,500 workers worldwide, or about four percent of its total workforce, as a cost cutting measure.
It is believed that 700 of these lost jobs will be in the state of Michigan— this accounts for 11 percent of its workforce in the region.
The job cuts, which are said to save Dow up to $400 million in annual costs, will also see the closing of plants in Greensboro, North Carolina and Yamakita, Japan.
CEO Andrew Liveris called the cuts “difficult but necessary actions.” He also expressed how they will allow the company “to go narrower and deeper into attractive, targeted market sectors” and help set “the stage for the new Dow— the world’s leading material science company.”
The cuts are coming soon after Dow Chemical fully acquired Dow Corning, a joint venture in which they previously only had partial ownership.
Dow Chemical has recently had their outlook downgraded to “neutral” by financial analysts.
It should be mentioned that Dow’s proposed merger with DuPont is still expected to go through.
Unfortunately, the Detroit region is also facing the loss of jobs from another large employer in XALT Energy.
XALT, a lithium-ion battery manufacturer, had previously promised to create 300 jobs in the region. Due to lost contracts, they now have to layoff 100 workers.