Paint firm AkzoNobel announces major programme of job losses

Graeme Whitfield
·1-min read
Akzo Nobel plant in Felling, Gateshead
-Credit: (Image: Akzo Nobel)


Paint industry giant AkzoNobel has announced plans to significantly reduce its workforce as a measure to cut costs.

The company - which has two large sites in the North East - issued a statement on Tuesday, confirming that a number of job cuts would be finalised by the end of 2025 in order to enhance operational efficiency. The Dutch conglomerate, which has a presence in 150 countries, is set to “streamline” its management hierarchy, affecting over 5% of its 35,700-strong global workforce.

In the UK and Ireland, AkzoNobel supports approximately 3,500 workers across 15 locations, which counts nine manufacturing sites among them. As yet, no specifics regarding the potential impact on UK personnel have been revealed.

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The group’s UK facilities include manufacturing sites in Ashington and Gateshead, where this year it opened a testing centre for wind turbine coatings at its site in Gateshead following a £1.4m investment.

The company said it was aiming to “reduce cost and to enhance the efficiency of its functions” adding that its plan was aiming to “simplify operations, accelerate decision-making, and streamline the company’s management structure”.

AkzoNobel CEO Greg Poux-Guillaume: “Over the last three quarters, we have demonstrated our ability to grow. We aim to accelerate profitable growth by optimizing our functional organization to become more agile in volatile markets and offset headwinds such as rising labor cost.”

The restructuring coincides with the ongoing inflationary challenges within the construction materials sector and ascending wage pressures, though AkzoNobel has managed a robust financial performance, marking a more than 25% hike in pre-tax profits during the first half of the year, reaching €496m (£413m), underpinned by stringent cost management.

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