Dow launches Transform to Outperform

"The goal of Transform to Outperform is to achieve significant growth and productivity gains that elevate Dow's competitive position," said Karen S. Carter, Dow's COO. "We are building on the momentum of our current self-help measures – transforming Dow into a company that is more resilient, consistently delivers growth, enables customer success, and delivers greater shareholder value across the cycle."

Key transformation goals and benefits

This work represents an ongoing intensive, company-wide analysis and Dow has established a dedicated internal team to guide the transformation. The company expects to provide at least US$2 billion in near-term operational EBITDA uplift. Dow's current projections are that approximately two thirds of the benefits will be from productivity improvements and one third from growth.

The company anticipates between US$1.1 - 1.5 billion in one-time costs associated with Transform to Outperform, including approximately between US$600 - 800 million in severance for approximately 4500 Dow roles and between US$500 - 700 million in other one-time costs.

A commitment to long-term strength and competitiveness

"Transform to Outperform will drive significant simplification in how work gets done, aimed at ensuring Dow's continued global leadership," said Jim Fitterling, Dow Chair and CEO. "By leveraging cross-industry processes and excellent technologies, this work will further accelerate measures we have already taken to address the prolonged trough and structural industry challenges. Our efforts will build on Dow's strong focus on safe and reliable operations while driving increased accountability and continuous improvement. This work aims to deliver improved growth, productivity and shareholder returns."

As Dow implements the actions announced today, the company will engage local stakeholders in each region and in compliance with local regulations and consultation processes.

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