January 27, 2023: On Thursday, Chemicals giant Dow Inc missed Wall Street calculates for fourth-quarter results, hurt by increased energy costs, lesser demand and supply chain troubles, and stated that it would slash nearly 2,000 careers or almost 5% of its workforce.

Production costs have increased in recent quarters following Russia’s invasion of Ukraine. In contrast, China’s Covid-led lockdowns have squeezed demand for Dow, selling its chemicals to industries which range from automobiles and food being packed to electronics that also face supply chain issues.

Dow stated that it plans to gain $1 billion in cost earnings in 2023 by decreasing operating expenses by $500 million. It said it would shut down assets and further develop its global asset base, mainly in Europe.

The company would charge $550 million to $725 million in the initial quarter of 2023 for costs related to these activities.

Shares of the company decreased almost 4% in premarket trade to $55.80.

Net sales in the fourth quarter decreased 17% to $11.86 billion, pressured by customers removing the stock, missing the average estimate of $12 billion, the Refinitiv IBES data stated.

The Midland, Michigan-based firm also missed its profit calculates. It posted a managing income of 46 cents for each share, compared with the average expectation of 58 cents per share.

Quarterly sales volume decreased by 8%, hurt by an 18% refusal in Europe, the Middle East, Africa, and India and destocking in building & construction and consumer-friendly end-markets in foreign places.

Overall prices have decreased by 5% in the fourth quarter from the previous year.

Packaging and Specialty Plastics parts net sales in the quarter were $6.1 billion, which decreased 16% compared with the previous year.