Dow Inc.’s fourth-quarter profits came in well below Wall Street expectations and the material sciences company said Thursday that it is slashing 1,500 jobs globally in an effort to cut costs as sales stagnate.

Dow Inc.’s stock shed early gains to trade down 6% Thursday, after the material-sciences company latest earnings miss and news it’s cutting 1,500 jobs as part of a cost-reduction program aiming to save $1 billion in savings.

Dow said on Thursday it will lay off 1,500 employees as part of its $1 billion cost savings plan due to lackluster demand and margin pressures, causing its shares to drop 6.3% in morning trade.