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 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.

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.