AkzoNobel continues to cut costs, announces 2,000 layoffs by the end of 2025

The Amsterdam-based paint company, known for brands such as Dulux, is taking cost-cutting measures to "accelerate profitable growth."

AkzoNobel announced that it will lay off 2,000 people by the end of next year. The layoffs account for about 6% of its global workforce, and it is not yet clear how many Chinese workers will be affected by the layoffs.

"We have demonstrated our ability to grow over the past three quarters. Our goal is to accelerate profitable growth by optimizing our functional organization, being more flexible in turbulent markets, and offsetting adverse factors such as rising labor costs," said Greg Poux-Guillaume, CEO of AkzoNobel, in a company statement. "This move is aimed at simplifying operations, speeding up decision-making, and streamlining the company's management structure."

The company announced in May that it would close production sites in the Netherlands, Ireland and Zambia and move production to other regions. AkzoNobel noted at the time that the move was "the first part of a multi-year industrial efficiency plan that will be fully completed by the end of 2026."

At the end of 2023, AkzoNobel also expressed its intention to cut costs, hoping to save 250 million euros in three years. The move is in response to slowing demand following the pandemic.

According to the company's second-quarter 2024 results, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were 400 million euros. While this was higher than the 397 million euros in the same period of 2023, it was still lower than analysts' expectations. In response to the earnings report, the company said it expected 2024 EBITDA to be at the lower end of its forecast of 1.5 billion euros to 1.65 billion euros.