Dutch paint and chemical manufacturer AkzoNobel has announced plans to cut approximately 2,000 jobs worldwide by the end of 2025, as part of a broader strategy to reduce costs and improve operational efficiency. The job cuts represent about 5.5 percent of the company’s global workforce, according to a statement released on Monday.
The restructuring initiative is aimed at simplifying operations, accelerating decision-making, and streamlining the company’s management structure. According to Greg Poux-Guillaume, CEO of AkzoNobel, the move is intended to make the company more agile in volatile markets and offset rising labor costs.
AkzoNobel’s brands include well-known names such as Sikkens and Flexa, and the company operates in a variety of markets, from coatings and chemicals to marine paints and wood preservatives. The job cuts are expected to affect employees across various departments, including the management structure, administrative workers, and employees in the finance department.
In addition to the job cuts, AkzoNobel has also announced plans to close a paint manufacturing facility in Groot-Anmers, a municipality in Zuid-Holland, and has shut down other plants in Ireland and Zambia. These closures are part of a broader strategy to optimize the company’s functional organization and enhance its competitiveness.
Poux-Guillaume stated, Over the last three quarters, we have demonstrated our ability to grow. 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.
The company’s financial performance has been relatively stable, with earnings of 488 million euros on revenue of 10.7 billion euros in 2023, compared to 388 million euros on 10.8 billion euros in revenue in 2022. These figures indicate that the company is on a positive trajectory despite the planned restructuring.
The job cuts and plant closures are expected to be finalized next year. The company is not yet clear on how many of the 2,400 Dutch-based employees will be affected. However, the restructuring is likely to impact the management and administrative layers within the Dutch offices.
AkzoNobel’s strategy is part of a broader trend in the chemical and manufacturing industries, where companies are increasingly focusing on cost optimization and operational efficiency. This approach is aimed at maintaining competitiveness in a market that is facing rising labor costs and other economic challenges.
The company’s statement emphasized that the restructuring is necessary to ensure long-term sustainability and profitability. This initiative is designed to simplify operations, accelerate decision-making, and streamline the company’s management structure, Poux-Guillaume added.
As the company moves forward with its restructuring plans, stakeholders will be closely watching the impact on its financial performance and market position. The job cuts and plant closures are expected to be implemented gradually over the next few months, with the goal of enhancing the company’s overall efficiency and competitiveness.
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