Dow Chemical laying off almost 5,000 employees causing concern in greater Houston area, Freeport

DOW Chemical lays off 4,500 workers

News of Dow Chemical laying off almost 5,000 employees is causing concern in the greater Houston area, especially Freeport. FOX 26's Randy Wallace has more. 

HOUSTON - Dow Chemical is a major employer in Freeport. It was established in 1940 and spans more than 7,000 acres.

Freeport Dow Chemical: Almost 5,000 employees to be laid off

The chemical complex in Freeport is one of the largest in the world with more than 40 plants that produce 44% of Dow's products in the U.S. and 20% worldwide.

Dow says it will lay off almost 15% of its workforce, almost 5,000 employees.

Dow is important for Freeport.

What they're saying:

"Dow employs about 7,000 people at its site and also uses another 4,500 hundred contractors in the vicinity," said Andrew Lipow, President of Lipow Oil Associates Consulting Firm. "The loss of a significant number of jobs is going to be a big impact."

The reasons for the layoffs: a shift to AI automation and completion in the petrochemical industry.

"A lot of the big plants are being built in the Middle East as well as China," said Lipow.

While specifics of how and where the layoffs will occur are unknown, the news isn't good for small business owners in Freeport. 

"I know a lot of people who work at Dow," said Ivan Isais, owner of Stay Faded King's Barbershop. "I hope they're safe. Dow brings a lot of customers to us."

FOX 26 spoke to Freeport Mayor Jerry Cain. He told us, "We have not received info on the specific impacts on Freeport. We will continue to monitor the situation."