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 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.

The materials science company said the reductions are part of a plan to cut $1 billion in costs, citing “persistently weak macroeconomic conditions.”