Akzo Nobel Unveils Restructuring Plan, Targeting Job Cuts and Closures
Amsterdam, Netherlands - Akzo Nobel, renowned for its Dulux paints, has announced plans to eliminate approximately 2,200 jobs and close at least five additional facilities by 2025 as part of its ongoing restructuring initiatives.
With approximately 34,600 employees at year-end 2022, Akzo Nobel initially targeted a global job reduction of about 2,000 by 2025.
"Through the implementation of these measures, we anticipate achieving over €150 million ($156 million) in annualized gross savings, with the projected run rate attained by this year's end," stated Greg Poux-Guillaume, CEO, during an analyst conference call.
The company, listed on the Amsterdam Stock Exchange, expects to conclude the functional job cuts in areas such as finance and HR by mid-2023, followed by a focus on higher-level positions in Europe.
In addition to the announced facility closures this year, further closures are planned for 2026, with the possibility of additional job reductions. The company has previously announced plant closures in Ireland, the Netherlands, and Zambia, and in January 2023, it declared plans to lay off up to 211 employees in France.
"We aim to avoid conveying the perception that restructuring is an ongoing process for Akzo Nobel," emphasized Poux-Guillaume. "Regardless of the eventual number, we intend to finalize these measures this year and move forward."
Akzo Nobel's restructuring plan, initiated two years ago, targets a €300 million benefit by 2027, aimed at addressing the post-COVID slowdown in its European DIY business.