Chemical maker Dow Inc. plans to cut 4,500 jobs, representing 12% of its workforce, as it shifts focus to AI and automation. The layoffs are part of a restructuring initiative called “Transform to Outperform” that aims to boost revenue by $2 billion but will incur up to $1.5 billion in one-time costs.

Dow’s CEO, Karen S. Carter, stated that the goal of the restructuring is to achieve growth and productivity gains to enhance the company’s competitive position. The move follows a trend of companies streamlining operations and cutting jobs to adapt to changing market demands and technological advancements.

Despite the layoffs, Dow’s shares were up by 3% in pre-market trading, signaling investor optimism about the company’s strategic shift. The chemical industry has faced challenges such as stagnant demand, regulatory changes, and rising production costs, prompting companies like Dow to implement cost-saving measures.

Dow’s latest earnings report showed an adjusted loss of 34 cents per share, surpassing analysts’ expectations of a 46 cent loss. The company attributed the better-than-expected results to its “self-help measures,” indicating that the cost-cutting initiatives are yielding positive outcomes.

The announcement by Dow to cut thousands of jobs is part of a broader trend among companies to downsize their workforce in favor of automation and AI technologies. Other companies like Pinterest and Amazon have also recently announced layoffs as they seek to improve efficiency and adapt to changing market dynamics.

Read more at Yahoo Finance: Chemical maker Dow is cutting 4,500 jobs, will rely on AI