Materials science company Dow is cutting about 2,000 jobs, or approximately 5% of its global workforce, as part of an effort to reach $1 billion in cost savings this year.

The Midland, Mich.-based company currently employs approximately 37,800 people.

Dow Inc. will take a charge of $550 million to $725 million in the first quarter. This mostly includes severance and related benefit costs; costs related to exit and disposal activities and asset write-downs and write-offs. Dow did not provide specifics but said it would evaluate assets with a focus on Europe.

The company also reported a fourth-quarter profit of $613 million, or 85 cents per share. Its adjusted profit was 46 cents per share, below the 57 cents per share that analysts surveyed by Zacks Investment Research were calling for.

Revenue totaled $11.86 billion, missing Wall Street’s estimate of $12.03 billion.

“In the fourth quarter, Team Dow continued to proactively navigate slowing global growth, challenging energy markets, and destocking,” Jim Fitterling, chairman and CEO, said in a statement. “In response, we shifted our focus to cash generation in the quarter as we lowered operating rates, implemented cost-savings measures, and prioritized higher-value products where demand remained resilient.

Shares fell 5.3% before the market open.