A Dutch paint maker plans to eliminate approximately 2,000 jobs worldwide, representing over 5% of its workforce, as part of a cost-reduction initiative.
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The Dulux paint maker, Akzo Nobel, which had about 35,700 employees as of June 30, aims to simplify its organizational structure and processes by the end of 2025. This decision comes in response to a post-COVID slowdown, rising raw material costs, and decreasing demand in the decorative DIY segment in Europe.
According to a senior spokesperson, the job cuts will primarily impact positions in finance and global business services at the company's head offices. This move is part of an 'industrial transformation' plan announced last year, which aims for a cost-saving benefit of €250 million ($278 million) by 2027. The company also previously announced plant closures in Ireland, the Netherlands, and Zambia.
Akzo Nobel's shares have fallen around 21% this year, reflecting broader challenges within the industry, where competitors like PPG and Nippon Paint have also experienced declines. In contrast, American rival Sherwin-Williams has seen a 22% increase in its stock due to higher pricing and sales.
While Akzo Nobel did not provide specific estimates on the savings from the job cuts, part-time positions may also be affected. The restructuring reflects the company's strategy to navigate a challenging market landscape effectively.