Dow has unveiled “Transform to Outperform,” a sweeping plan to simplify operations, streamline processes, and modernize customer service, targeting at least $2 billion in near-term operational EBITDA. The initiative will harness AI and automation to drive growth, improve productivity, and enhance shareholder returns.

"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 chief operating officer. "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."

The plan represents a company-wide transformation, guided by a dedicated internal team. Dow expects that roughly two-thirds of the benefits will come from productivity improvements and one-third from growth initiatives.

The overhaul comes with an estimated $1.1–1.5 billion in one-time costs, including $600–800 million in severance for about 4,500 roles and $500–700 million in other restructuring expenses.

"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 best-in-class, cross-industry processes and leading-edge 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."

Dow emphasized that as it rolls out the initiative, the company will engage local stakeholders in each region and comply with all regulatory and consultation requirements.