DULUX paint maker Akzo Nobel plans to cut about 2,000 jobs globally as part of efforts to reduce costs, targeting positions in its head offices, the Dutch company said on Tuesday (Sep 24).
“We will be simplifying our structure, our processes, reducing cost of administrative functions,” Akzo Nobel’s senior spokesperson told Reuters, saying positions in finance or global business services at the head offices would be affected.
Akzo Nobel, which had around 35,700 employees as of Jun 30, said the job cuts would be finalised by the end of 2025.
The Amsterdam-listed group had announced a cost saving “industrial transformation” plan late last year, aiming for a 250 million euros (S$358.9 million) benefit by 2027, following a post-Covid slowdown marked by rising raw material costs and customer destocking in its decorative do-it-yourself segment in Europe.
Related to this, it announced plant closures in May in Ireland, the Netherlands and Zambia.
The Akzo Nobel shares have dropped around 21 per cent so far this year, mirroring an industry-wide slump, with rivals PPG and Nippon Paint down 14.9 per cent and 20.9 per cent respectively.
American paint maker Sherwin-Williams, which raised its full-year earnings forecast in July supported by higher pricing and increased sales, has meanwhile gained more than 22 per cent year to date, an outlier in an otherwise sluggish environment.
Akzo did not have a specific estimate on how much costs would be saved with the job cuts, the spokesperson said, adding that part-time positions could also be affected.
Its shares were up 0.9 per cent by 0910 GMT. REUTERS
