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 missed fourth-quarter profit estimates on Thursday, and said it will lay off 1,500 employees as a part of its $1 billion cost savings plan, as the chemical firm grapples with lackluster demand. Shares were down 2.