In an effort to preserve cash as the global economy fitfully recuperates from the COVID-19 pandemic, Dow is reducing its workforce by 6%—about 2,200 employees—and aims to shutter uncompetitive facilities.
Dow is the first major chemical company to announce earnings for the second quarter, the period most impacted by the US lockdowns intended to stem the spread of the novel coronavirus. Its sales fell by 24% compared with the same period in 2019, to $8.4 billion; it posted a net loss of $225 million.
Packaging and specialty plastics—Dow’s largest segment—saw growth in nondurable packaging, such as for food, but that was offset by poor sales to durable markets and lower selling prices. Overall, the business’s sales fell 23%...Bad news for Dow employees, and this bears watching. Best wishes to them, and all of us.