Akzo Nobel Layoffs: Dulux Paints Maker To Fire About 2,000 Employees Globally

Akzo Nobel Layoffs: The job cuts will primarily affect positions within its head offices, as the firm seeks to streamline operations and enhance efficiency in response to current market conditions

Akzo Nobel Layoffs: After the announcement of layoffs, Akzo Nobel's shares jumped over 1 per cent on the Amsterdam stock exchange

Source : IndiaMART

Akzo Nobel Layoffs: Dulux paint manufacturer Akzo Nobel announced on Tuesday that it intends to reduce its global workforce by approximately 2,000 jobs. This decision is part of a broader strategy to cut costs across the company. The job cuts will primarily affect positions within its head offices, as the Dutch firm seeks to streamline operations and enhance efficiency in response to current market conditions.

"We will be simplifying our structure, our processes, reducing cost of administrative functions," a senior spokesperson from Akzo Nobel told the news agency Reuters. The spokesperson noted that this initiative would impact roles in finance and global business services at the company's head offices.

The Amsterdam-listed company unveiled a cost-saving initiative called 'industrial transformation' late last year to achieve savings of 250 million euros (approximately $278 million) by 2027. This strategy is a response to a slowdown following the COVID-19 pandemic, which has led to increasing raw material costs and customer destocking in its decorative do-it-yourself segment across Europe.

In connection with this initiative, the company announced plant closures in May in Ireland, the Netherlands, and Zambia. After the announcement of layoffs, Akzo Nobel's shares jumped over 1 per cent on the Amsterdam stock exchange.

While the spokesperson mentioned that Akzo Nobel does not have a specific estimate for the cost savings resulting from the job reductions, they noted that part-time positions may also be impacted. The company stated that these "structural adjustments" are expected to be completed by the end of 2025.

Akzo Nobel operates in over 150 countries worldwide, specialising in the production of paints and coatings for both consumer and industrial applications. Their diverse range of products is designed to enhance and protect structures globally. Established in 1792, the company has a long history in the industry and is dedicated to providing its customers with not only high-quality products but also valuable services.