Dow introduces Transform to Outperform initiative
Dow has announced the launch of its Transform to Outperform program, a company-wide initiative designed to raise productivity standards, strengthen competitiveness, and deliver improved financial returns. The program focuses on simplifying Dow’s operating model, streamlining end-to-end processes, modernizing customer engagement, and resetting the company’s cost structure.
Through this initiative, Dow is targeting at least $2 billion in near-term operational EBITDA improvement. The benefits are expected to be incremental to the company’s previously announced $1 billion cost savings program and accretive to earnings beginning in 2025.
Simplifying operations and modernizing execution
Transform to Outperform is built around a comprehensive internal review of how work is performed across the organization. Dow has established a dedicated transformation team to guide execution, with a strong emphasis on reducing complexity, improving accountability, and increasing consistency across global operations.
A key pillar of the initiative is the expanded use of digital tools, artificial intelligence, and automation to unlock step-change improvements in productivity and growth. By modernizing internal workflows and customer-facing processes, Dow aims to create a more agile, resilient organization capable of responding faster to market changes.
Financial impact and productivity gains
Dow expects approximately two-thirds of the targeted EBITDA uplift to come from productivity improvements, with the remaining one-third driven by growth initiatives. The company has outlined a multi-year impact profile, with benefits beginning in 2026 and continuing through 2028.
To enable the transformation, Dow anticipates one-time cash costs of approximately $1.1 billion to $1.5 billion. These costs include severance expenses associated with workforce reductions of around 4,500 roles, as well as additional one-time expenditures linked to system upgrades, process changes, and implementation activities.
Strengthening long-term competitiveness
Dow’s leadership emphasized that Transform to Outperform is designed to reinforce the company’s long-term strength amid ongoing structural challenges and cyclical pressures in the global chemical industry. By adopting best-in-class processes and advanced technologies used across multiple industries, the program aims to improve operational reliability while driving continuous improvement.
The initiative builds on Dow’s existing self-help measures and maintains a strong focus on safety and operational excellence. Management expects the transformation to enhance customer success, support sustainable growth, and deliver improved shareholder returns across business cycles.
Local engagement and responsible execution
As the program is implemented, Dow plans to engage with employees and local stakeholders across its global footprint. All actions will be carried out in accordance with local regulations, consultation requirements, and established governance processes.
With Transform to Outperform, Dow positions itself to raise the competitive benchmark for productivity and growth in the chemical industry, while creating a more streamlined and future-ready operating model.
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