AkzoNobel to cut 2,000 jobs worldwide
The paint and coatings manufacturer AkzoNobel has confirmed it plans to cut around 2,000 jobs as it attempts to cut its costs and make operations more efficient.
The firm has a global portfolio that includes the coatings brands International (Interlux in North America), Sea Hawk, Intersleek and Awlgrip, as well as the global domestic paint brand Dulux.
In a statement made on Tuesday (24 September 2024), the firm says: “AkzoNobel has announced the next steps to reduce cost and to enhance the efficiency of its functions. This initiative is designed to simplify operations, accelerate decision-making, and streamline the company’s management structure. A key element of the plan involves a reduction of around 2,000 positions globally.”
The Dutch group has operations in 150 countries. The move will affect more than five per cent of its 35,700 global employees, although the firm has not supplied further information about which countries will be impacted.
Despite continued inflation and rising costs in the building materials sector, the group recently reported that pre-tax profits rose by over a quarter in the first half of the year to €496mn (£413mn).
“Over the last three quarters, we have demonstrated our ability to grow. We aim to accelerate profitable growth by optimising our functional organisation to become more agile in volatile markets and offset headwinds such as rising labour cost,” says AkzoNobel CEO, Greg Poux-Guillaume.
The Financial Times reports that Amsterdam-traded shares in AkzoNobel rose one per cent in morning trading following the announcement, having declined 14 per cent over the past year.
The layoffs are planned to be finalised by the end of 2025.