Chemical manufacturer Dow Inc. is the latest company to announce substantial layoffs as it shifts to a stronger reliance on artificial intelligence and automation.

The company on Thursday announced it would cut 4,500 jobs as part of a streamlining operation it calls “Transform to Outperform.” The cuts will provide a $2 billion boost in near-term revenue, the company said, but will result in $1.1 billion to $1.5 billion in one-time costs, including severance and other costs.

The moves represent approximately 12% of the company’s workforce. Dow had 36,000 employees by December 2024, according to Bloomberg.

“The goal of Transform to Outperform is to achieve meaningful growth and productivity gains that elevate Dow’s competitive position,” said Karen S. Carter, Dow’s chief operating officer. in a statement. “We’re building on the momentum of our current self-help measures: transforming Dow into a more resilient company that delivers consistent growth, enables customer success and delivers greater shareholder value over the cycle.”

The company’s shares rose about 3% in premarket trading.

Dowlike other chemical companies, it has seen demand flatten in recent years, along with tighter regulations and higher production costs. In its most recent earnings, which were also announced Thursday morning, the company reported an adjusted loss of 34 cents per share, beating analysts’ expectations for a loss of 46 cents. The company credited “self-help measures” for the beat.

Dow joins a growing number of companies that are reducing their workforce. Pinterest earlier this week announced plans to cut its workforce by 15% and Amazon on Wednesday said it would cut 16,000 jobs as it pushes for AI and efficiency.