Dow Industries announced today that it will cut 2,515 jobs and shutter 1,500 retail stores and facilities by the end of 2020, part of a broader restructuring plan that includes the shutdown of nearly 300 manufacturing facilities across the country.
The company said it would also close some 1,800 factory jobs in 2018, the first time in nearly a decade that it has done so.
The layoffs are part of Dow’s strategy to restructure its operations and improve shareholder value, which will add to its bottom line, CEO William Gentry said in a statement.
“While we do not believe we will achieve profitability in 2020, we are focused on making the most of our opportunities and reducing our risk and reducing the burden on shareholders,” Gentry added.
“Our restructuring plans are designed to achieve the long-term goals of a better company that will be a stronger and more resilient company.”
Dow was not immediately available for comment.
In an interview with CNBC, Gentry stressed that the company is not going to shut down the manufacturing facility it operates in Ohio.
“We are not closing it down, we will be able to open it up in the future,” Gison said.
The shutdowns will have a big impact on the jobs of those laid off.
The Dow announcement comes at a particularly difficult time for the company, which is facing pressure from analysts and investors to slash costs amid slowing consumer demand and a slowing global economy.
The stock has dropped more than 7 percent since it hit a high in October 2017 and now trades for around $14 a share.
Dow has been the target of several hedge funds, including Blackstone Group, whose former CEO, Bruce Flint, is now CEO of Dow.
Flint, who was ousted in March, has been trying to shore up the company’s balance sheet and has repeatedly sought to bolster the company by selling its holdings.
He has also sought to boost the company to a higher valuation, though analysts are skeptical of his efforts.