Akzonobel slashes 2,000 jobs worldwide

AMSTERDAM

AkzoNobel, the world's leading paintmaker and manufacturer of Dulux paint, said on Tuesday it was cutting 2,000 jobs globally, more than 5 percent of its workforce, as it strives to cut costs.

Chief Executive Greg Poux-Guillaume said the job losses would allow the Dutch company to "become more agile in volatile markets and offset headwinds such as rising labor cost."

The announcement drove AkzoNobel stock higher at the opening of the Amsterdam exchange, rising 1.5 percent and beating the wider market which was up 0.6 percent.

AkzoNobel has turned in three consecutive quarters of growth but the industry has suffered from rising raw material costs and a slowing global economy.

The firm employed 35,200 people in more than 150 countries at the end of last year, according to its most recent annual report.

The job-cutting plan aims to reduce cost and enhance efficiency, said Poux-Guillaume, adding it would "accelerate decision-making, and streamline... management structure."

The cost-cutting measures are expected to be finalized by the end of next year, said the Amsterdam-based firm.

Earlier this year, the company also announced plans to close a paint manufacturing facility in the Groot-Anmers municipality in Zuid-Holland. Other plants in Ireland and Zambia were also slated to be shut down.

Last year, AkzoNobel earned a profit of 488 million euros on revenue of 10.7 billion euros. It earned 388 million euros on 10.8 billion euros in revenue in 2022m