The iconic paint company behind Dulux is poised to trim its workforce by around 2,000 jobs as it seeks to reduce expenses. On Tuesday, AkzoNobel revealed its intention to achieve these sweeping layoffs by the end of 2025 with the aim of enhancing operational efficiency.
Operating in 150 countries, including the UK, the Dutch conglomerate has roughly 3,500 personnel across the UK and Ireland over 15 locations, one of which is in Deeside.
The company said it would “streamline” its managerial structure as part of this move. This decision will affect over 5% of its total global workforce of 35,700 staff members.
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AkzoNobel has not yet specified how many employees in the UK will be affected by these job cuts. For the latest Welsh news delivered to your inbox sign up to our newsletter.
These cost-saving measures are unfolding against the challenging backdrop of ongoing inflation within the building materials sector and escalating wages. Despite these financial pressures, AkzoNobel has managed to report an increase in pre-tax profits for the first half of the year, with figures climbing by more than a quarter to reach 496 million euros (£413 million), bolstered by stringent cost management.
Chief Executive Greg Poux-Guillaume stated: “Over the last three quarters, we have demonstrated our ability to grow.” He outlined the company’s growth ambitions by stating: “We aim to accelerate profitable growth by optimising our functional organisation to become more agile in volatile markets and offset headwinds such as rising labour cost.”