Dow announced the launch of Transform to Outperform, a companywide initiative aimed at simplifying operations, streamlining processes and resetting its cost structure. The program targets at least $2 billion in near-term operating EBITDA improvement and is expected to be accretive to 2025 earnings levels while building on Dow’s previously announced $1 billion cost savings program.

According to the company, approximately two-thirds of the expected benefit is projected to come from productivity improvements, with the remaining third driven by growth initiatives. Dow said the effort will leverage increased use of AI and automation while modernizing how it serves customers.

“The goal of Transform to Outperform is to achieve significant growth and productivity gains that elevate Dow’s competitive position,” said Karen S. Carter, 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.”

Dow anticipates approximately $1.1 billion to $1.5 billion in one-time costs associated with the initiative, including an estimated $600 million to $800 million in severance tied to roughly 4,500 roles, along with additional restructuring and implementation expenses. The company expects $500 million of in-year EBITDA benefit in 2026, followed by incremental gains in 2027 and 2028.

“By leveraging best-in-class, cross-industry processes and leading-edge technologies, this work will further accelerate measures we have already taken to address prolonged industry challenges,” said Jim Fitterling, Dow chair and CEO. “Our efforts will build on Dow’s focus on safe and reliable operations while driving increased accountability and continuous improvement.”

Dow said it will engage local stakeholders as implementation progresses and will conduct actions in accordance with regional regulations and consultation requirements.

This announcement reflects ongoing shifts in operational strategy across the coatings and materials value chain as manufacturers respond to cost pressure productivity demands and evolving market conditions.