Storied materials-science company Dow Inc. (DOW) – Get Report said that it would restructure, cutting “workforce costs” 6% and taking $500 million to $600 million of third-quarter charges for the effort.
It didn’t specify the amount of any layoffs.
The restructuring stems from the coronavirus pandemic, which has curbed demand for Dow products, the company said.
Besides the 6% cost cut, the revamp includes “[rationalizing] certain manufacturing assets,” the Midland, Mich., company said in a statement.
“These actions are expected to result in total annualized [earnings before interest, taxes, depreciation and amortization] savings of more than $300 million by the end of 2021.”
The industrial intermediates-and-infrastructure segment will shut certain amines and solvents facilities in the U.S. and Europe, as well as select small-scale downstream polyurethanes manufacturing facilities.
The performance-materials-and-coatings unit will shutter manufacturing assets, primarily small-scale coatings reactors.
“Given the expected gradual and uneven global economic recovery