AkzoNobel, the world’s largest paintmaker and producer of Dulux, announced on Tuesday that it will cut 2,000 jobs globally—more than 5% of its total workforce—in a move to reduce costs and increase agility amid challenging market conditions.
In a statement, AkzoNobel CEO Greg Poux-Guillaume explained that the job cuts are necessary for the company to “become more agile in volatile markets and offset headwinds such as rising labor costs.” The restructuring is part of a broader cost-saving initiative aimed at enhancing operational efficiency, streamlining management, and accelerating decision-making.
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Following the announcement, AkzoNobel’s stock rose by 1.5% on the Amsterdam Stock Exchange, outperforming the broader market, which gained 0.6%.
Despite reporting three consecutive quarters of growth, the paint industry has been hit by rising raw material costs and a slowing global economy. AkzoNobel, which employed 35,200 people across more than 150 countries at the end of 2023, is seeking to mitigate these pressures through its job-cutting strategy.
The company expects to finalize the cost-cutting measures by the end of 2025, with the aim of maintaining competitiveness in a challenging global environment.
Key Points: AkzoNobel Job Cuts
- Job Reductions: AkzoNobel is cutting 2,000 jobs globally, representing over 5% of its workforce, as part of a cost-cutting initiative.
- CEO Statement: CEO Greg Poux-Guillaume stated that the job cuts are aimed at making the company more agile in volatile markets and addressing rising labor costs.
- Stock Market Impact: Following the announcement, AkzoNobel’s stock rose 1.5% on the Amsterdam Stock Exchange, outperforming the wider market.
- Industry Challenges: Despite three consecutive quarters of growth, the company faces pressures from rising raw material costs and a slowing global economy.
- Timeline: The restructuring and cost-saving measures are expected to be completed by the end of 2025.
- Global Presence: AkzoNobel employed 35,200 people in over 150 countries at the end of 2023.
