Dulux paint maker Akzo Nobel has revealed plans to reduce its workforce by approximately 2,000 jobs globally, a move that constitutes over 5% of its total employees. The Dutch company, which had around 35,700 employees as of June 30, cited the need to simplify its structure and processes, particularly focusing on reducing administrative costs at its head offices.
According to a senior spokesperson from Akzo Nobel, the job cuts will predominantly impact positions in finance and global business services. The company anticipates that these layoffs will be finalized by the end of 2025, as part of a larger strategy to enhance operational efficiency following a post-COVID slowdown.
This announcement follows an earlier commitment to an "industrial transformation" plan aimed at achieving cost savings of €250 million ($278 million) by 2027. This plan comes in response to rising raw material costs and a decline in customer demand in the decorative do-it-yourself segment across Europe, leading to the announcement of plant closures in Ireland, the Netherlands, and Zambia in May.
Akzo Nobel’s share prices have fallen approximately 21% this year, reflecting broader struggles within the paint industry, with competitors like PPG and Nippon Paint also experiencing declines of 14.9% and 20.9%, respectively. In contrast, American paint maker Sherwin-Williams has seen its stock rise more than 22% year-to-date, benefitting from higher pricing and increased sales.
