Dow cuts 4,500 jobs in pivot to AI as layoff wave continues

Dow Inc. plans to cut approximately 4,500 jobs as the chemical giant pivots toward artificial intelligence and automation to streamline its global operations.

The Michigan-based company expects to incur between $600 million and $800 million in severance-related costs. Dow shares fell 2% in pre-market trading following the announcement.

The layoffs are part of a larger restructuring effort for the company, which currently employs about 34,600 people worldwide. Dow previously announced 1,500 job cuts in January 2025 and eliminated 800 positions in July after shuttering three plants in Europe.

The announcement mirrors a broader trend of mass layoffs across major industries. Amazon recently cut 16,000 corporate roles, while United Parcel Service (UPS) expects to eliminate up to 30,000 operational positions this year.

Social media platform Pinterest also attributed recent staff reductions in part to an increased reliance on AI.

The U.S. labor market has shown signs of cooling, adding only 50,000 jobs last month. Companies are increasingly facing higher operating expenses, including costs stemming from tariffs imposed by President Donald Trump.

The current wave of layoffs at Dow Inc. and other blue-chip giants represents a fundamental structural realignment of the U.S. economy rather than a mere cyclical reaction to market volatility. We are witnessing a systematic pivot in capital allocation, as investment is increasingly diverted from human labor toward automation and generative artificial intelligence. These maneuvers are not temporary cost-cutting measures; they are permanent operational restructurings aimed at decoupling long-term growth from headcount.

The explicit citations of AI as a primary driver for workforce reductions by companies such as Pinterest and Dow mark a critical inflection point in corporate strategy. This admission confirms that the automation frontier has moved beyond the manufacturing floor, aggressively penetrating white-collar administrative and operational functions. The "labor stagnation" currently observed by economists—characterized by a reluctance to both hire and fire—reflects a strategic pause: enterprises are hesitant to recruit for roles they intend to automate within the next fiscal cycle.

External pressures, including rising operational overhead and the persistent shadow of protectionist trade policies—specifically the tariff frameworks accelerated during the Trump administration—have only heightened the urgency of this transition. For corporate leadership, the high upfront capital expenditure of AI integration offers a more predictable and scalable alternative to the variable and rising costs of human labor. However, this push for efficiency carries significant macroeconomic risks. As major employers signal a future defined by a shrinking workforce, the resulting erosion of consumer confidence is likely to stifle household spending, potentially triggering the very economic slowdown that firms are seeking to outrun.

Labor market instability and rising overhead costs are hitting Vietnamese-American small businesses hard, especially within the nail salon industry and phở restaurants. These businesses are uniquely vulnerable to shifts in consumer behavior; when people worry about job security, discretionary spending on services and dining is often the first thing to go. At the same time, a weakening job market creates significant hurdles for the younger generation and recent immigrants looking for work in logistics and warehousing—sectors like Amazon and UPS that many in our community rely on for steady income. Taken together, these factors threaten to stifle economic opportunity and mobility across the diaspora.