(Reuters) - Chemical firm Dow missed fourth-quarter profit estimates on Thursday, and said it will lay off 1,500 employees globally.

Dow shares rose 2% in premarket trading.

The chemical industry has been struggling with weak demand recovery, especially in Europe, where a challenging regulatory environment has led some companies to rethink their strategies.

Last year, Dow announced it had begun reviewing some of its European assets, focusing on its polyurethane business.

The company had also said it was reducing exposure to low-value merchant orders by shutting down its Freeport unit in 2025, which represents about 20% of North America's industry capacity.

The workforce reduction is a part of the company's plan to take additional actions to deliver $1 billion in cost cuts.

The company reported an adjusted profit of 0 cents per share, compared with analysts' average estimate of 24 cents per share, according to data compiled by LSEG.