Dow slashes 4,500 jobs in AI-driven wave, rattling US labor market

Dow Inc. announced Thursday it will slash approximately 4,500 jobs as the chemical giant accelerates its shift toward artificial intelligence and automation.

The company expects to incur between $600 million and $800 million in severance-related costs. Shares of Dow, which employs about 34,600 people worldwide, fell 2% in premarket trading following the announcement.

The move follows a series of previous workforce reductions, including 1,500 jobs cut in January 2025 and 800 positions eliminated following the closure of three European plants in July.

Dow joins a growing list of major corporations announcing layoffs this week. Amazon has cut roughly 16,000 corporate roles, while United Parcel Service (UPS) plans to shed up to 30,000 jobs this year. Pinterest also cited the integration of AI as a primary factor in its own staffing reductions.

Business leaders attributed the cuts to rising operating costs, including Trump-era tariffs, and a strategic shift to prioritize AI investments.

The announcements come as economists describe the current labor market as being in a state of "no hire, no fire." Data shows the economy added only 50,000 jobs last month.

The recent wave of workforce reductions at industry stalwarts like Dow, Amazon, and UPS signals a profound structural realignment within the U.S. economy, far transcending a typical cyclical downturn. By explicitly citing artificial intelligence and automation as primary catalysts for these cuts, these corporations are telegraphing a long-term strategic pivot rather than a temporary exercise in belt-tightening. This shift highlights a deliberate move to permanently eliminate roles deemed replaceable by technology, even in the absence of aggressive new hiring.

We are witnessing a troubling paradox in the labor market: while specialized AI-centric roles may see marginal growth, tens of thousands of legacy positions in administration and operations face permanent obsolescence. The prevailing anxiety among American jobseekers is rooted in the reality of a cooling labor market, characterized by tepid job growth and shifting corporate priorities.

Businesses are currently navigating a pincer movement of economic pressures. On one side, trade policy volatility—specifically the enduring impact of Trump-era tariffs—has inflated operational costs. On the other, the existential necessity to divert capital toward emerging technologies is paramount to remaining competitive. Caught in the crossfire, the American worker faces an increasingly precarious future where traditional skill sets are devaluing at an unprecedented rate.

While these layoffs are largely concentrated in major corporations and don’t directly target Vietnamese-owned sectors like the nail salon industry or phở restaurants, the community is not immune to the fallout. Widespread economic uncertainty and the fear of job loss could lead to a dip in consumer spending, creating a ripple effect for small businesses. Furthermore, Vietnamese-Americans working in corporate or logistics roles at giants like Amazon and UPS are facing the direct impact of these workforce reductions.