Dulux, a major employer with a Welsh base, is set to reduce its workforce by 2,000 jobs as part of cost-cutting measures. The company, known for its iconic paint brand, aims to implement these job cuts by the end of 2025 to improve operational efficiency. AkzoNobel, the Dutch conglomerate behind Dulux, operates in 150 countries, including the UK, with approximately 3,500 employees in the UK and Ireland across 15 locations, including one in Deeside, Flintshire.
The company plans to restructure its managerial setup as part of the initiative, impacting over 5% of its global workforce of 35,700 employees. While the specific number of job losses in the UK is yet to be disclosed, these measures come amid challenges in the building materials sector due to inflation and rising wages. Despite these financial pressures, AkzoNobel reported a rise in pre-tax profits for the first half of the year, increasing by over a quarter to 496 million euros (£413 million), attributed to effective cost management.
Greg Poux-Guillaume, the Chief Executive, emphasised the company’s goal to achieve profitable growth by enhancing operational agility and offsetting challenges like escalating labour costs. The company’s ambitions for growth remain strong, with a focus on optimising organisational efficiency in volatile markets. These developments signal a strategic shift for AkzoNobel as it navigates a changing economic landscape while preserving its commitment to growth and efficiency.
As AkzoNobel embarks on this restructuring journey, the impact on its workforce and operations in the UK will unfold in the coming months. The company’s decision underscores the evolving demands of the global business environment and the imperative for companies to adapt to ensure long-term sustainability and competitiveness.