Dow Inc. has outlined a series of targeted actions aligned to its previously stated plan to achieve US$1 billion in cost savings in 2023. The proactive actions will further optimize the company's cost structure in response to near-term macroeconomic uncertainty, while maintaining its long-term competitiveness across the economic cycle.

Dow announces actions to optimize its cost structure.

Specifically, the company expects to realize US$1 billion in cost savings in 2023 through:

• Structural improvements of US$500 million, maintaining a low cost-to-serve operating model

• Optimizing labor and services costs, including a global workforce reduction of approximately 2,000 roles;

• Shutting down select assets, while further evaluating Dow's global asset base, particularly in Europe, to ensure long-term competitiveness and enhance cost efficiency; and

• Increasing productivity via end-to-end process improvements.

• Operating expense reductions of US$500 million, focused on near-term cash flow

• Decreasing turnaround spending, with a continued focus on maintaining safety and reliability;

• Reducing purchased raw materials, logistics and utilities costs; and

• Aligning spending levels to the macroeconomic environment.

"We are taking these actions to further optimize our cost structure and prioritize business operations toward our most competitive, cost-advantaged and growth-oriented markets, while also navigating macro uncertainties and challenging energy markets, particularly in Europe," stated Jim Fitterling, Dow chairman and CEO.

The company will record a charge of US$550 million to US$725 million in the first quarter of 2023 for costs associated with these activities, which primarily include severance and related benefit costs; costs associated with exit and disposal activities; and asset write-downs and write-offs.

Longer-term, Dow remains on track to grow its underlying EBITDA by greater than US$3 billion by 2030 while reducing its carbon emissions by 30% versus its 2005 baseline as it progresses on its path to carbon neutrality by 2050.