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.

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

Michigan-based company Dow Inc. announced Thursday that it would lay off 1,500 employees as part of a $1 billion cost-cutting initiative, citing sluggish demand and margin pressures. The announcement sent Dow’s shares tumbling 6.