AMSTERDAM — AkzoNobel, Europe’s largest paint manufacturer known for brands such as Dulux, Sikkens, and Flexa, announced plans to cut 2,000 jobs by the end of next year as part of a cost-cutting initiative aimed at accelerating profitable growth. This reduction represents approximately 6% of the company’s global workforce, although the impact on Dutch employees remains unclear.
In a statement, CEO Greg Poux-Guillaume emphasized the company’s recent growth, stating, “We aim to accelerate profitable growth by optimizing our functional organization to become more agile in volatile markets and offset headwinds such as rising labor costs.” He noted that the restructuring aims to simplify operations, enhance decision-making, and streamline management.
This announcement follows previous cost-reduction efforts, including the closure of manufacturing sites in the Netherlands, Ireland, and Zambia earlier this year. Those closures were described as the initial phase of a multi-year industrial efficiency plan expected to be completed by the end of 2026.
In late 2023, AkzoNobel indicated its intention to cut costs further, targeting savings of €250 million over the next three years in response to a post-pandemic slowdown in demand.
In its second-quarter results, the company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of €400 million, surpassing last year’s €397 million but falling short of analysts’ expectations. As a result, AkzoNobel projected its 2024 EBITDA to land at the lower end of its forecast range of €1.50 billion to €1.65 billion.
Following the announcement, shares in AkzoNobel rose by 0.82% during trading on Tuesday at approximately 11:15 CEST.
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