Johnson Matthey Cuts 900 Jobs in Drastic Restructuring, Management Reduced by 30%! The Cruel Adjustments Behind Johnson Matthey's Ambition to Become a Global Leader in Energy Transition

Johnson Matthey, a global company headquartered in London specializing in the production of automotive catalytic converters, is actively implementing strategic changes to further reduce costs, optimize the business structure, and strive to become a global leader in the energy transition. To achieve this ambitious goal, the company plans to reallocate about 600 positions in support functions, while outsourcing some work processes to improve efficiency and competitiveness.

In this process, the company's management also demonstrated a firm determination to streamline the management team, cutting the proportion of up to 30%, to ensure the rationalization and efficiency of the organizational structure. This follows a series of measures taken by Johnson Matthey, including the closure of four manufacturing sites, three of which are overseas, and the reduction of 900 employees in the latest round of restructuring to respond to market changes and business needs.

A spokesman for Johnson Matthey made it clear that the company is committed to the transformation, focusing on the core precious metals and catalytic technology areas, by streamlining functions and outsourcing business processes, to achieve the optimization of personnel structure. At the same time, the company is actively investing in new technologies and recruiting more professionals in engineering and business positions to enhance the company's innovation capabilities and market competitiveness.

The company also plans to reduce the number of senior management positions by 25% to 30% to ensure a balanced organizational structure and avoid managerial bloat. Annual cost savings are expected to exceed £150 million by early 2025. While cutting costs across the board, the company is undergoing a major restructuring to improve overall performance.

It is worth noting that Johnson Matthey has recently experienced volatility in its share price on the London Stock Exchange, dropping out of the FTSE 100 index and joining the FTSE 250 index instead. In response, Liam Condon, Chief Executive Officer of the company, stressed that the company is accelerating the pace of transformation, simplifying business processes and improving operating efficiency. As the Group continues to enhance its business capabilities globally, the transformation program is gradually building a leaner and more efficient organization and achieving significant cost savings.

Despite the challenges of volatile precious metals prices, Johnson Matthey has delivered positive results. Full-year operating profit is expected to rise by about 8 to 9 per cent, more than previously expected. On the back of that positive expectation, the company's shares were up about 5% on Wednesday morning.