Amsterdam, September 24: Dulux paint maker AkzoNobel is planning to reduce its global workforce by 5% to reduce its costs and simplify operations. The AkzoNobel layoffs will affect around 2,000 employees including those from head offices. The Dutch multinational paint maker aims to reduce its administrative costs and improve the functions by this action.

Reuters reported that a company spokesperson told it about the AkzoNobel layoffs and highlighted that the employees working in finance or global business services would be affected. The Dulux paint maker announced  its cost-saving plan last year for industrial transformation which was aimed to help the company save USD 250 million by 2027. Twitter Layoffs-Affected Employee Wins Legal Battle Against Elon Musk Over Unpaid Severance: Reports.
The AkzoNobel spokesperson said that with the layoffs, the company would be able to reduce administrative costs and simplify its structure and processes. The maker of Dulux paint had 35,700 employees at the end of June 30. According to the report, the company suffered during post-COVID slowdown when the raw material costs were rising and the customers were destocking in its decorative DIY segment in Europe.
The report said that AkzoNobel had shut down its plants in countries like Netherlands, Zambia and Ireland in May 2024. The AkzoNobel shares also slumped 21% this year showcasing the struggles in the industry. The rival companies like Nippon Paint and PPG also witnessed drop in their shares. 20.9% and 14.9% respectively. The Washington Post Layoffs: Newspaper and Media Company Lays Off 25% of Its Employees From Tech Arm, Arc XP Amid Strategy Shift for Refined Product Vision.
On the contrary to the challenges faced by the paint makers in the industry, the US-based paint maker Sherwin-Williams gained 22% year-to-date. The company raised full-earning forecast in July which was supported by the high pricing and increased sales.

(The above story first appeared on LatestLY on Sep 24, 2024 04:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).