Akzo Nobel is known for manufacturing Dulux Paints. The company recently made a shocking statement for many employees working at the administrative level. It shows that the Dulux Paint Makers will be laying off 2,000 employees globally. The country has its existence in more than 100+ countries. Akzo Nobel is trying to use layoff techniques for cost-cutting. Thus, Akzo aims to save more than Euro 250 million by 2027. It will also close around three plants in May. Let us decode more about Akzo Nobel’s upcoming move for cost-cutting below.
Why Is Akzo Nobel Laying Off 2,000 Employees?
Akzo Nobel will be laying off more than 2,000 employees. The main reason behind the layoff is the cost-cutting. The company targets Euro 250 million of cost-cutting by 2027. The countries like Netherlands, Zambia, and Ireland will turn off their operations soon. Many companies often engage themselves in layoffs to save their funds. As the raw material cost also increases after the lockdown. Thus, the company ends up with less demand as the price increases. Thus, the company already has a target of cost-cutting for the purpose. It will be shutting down its work in Zambia, the Netherlands, and Ireland.
It will complete the structural adjustments by 2025. While the company made the announcement public. It received a jump in its share price from Amsterdam. Akzo Nobel is giving its services all over the world. Running successfully for the past three decades, it is now focusing on growing at a faster speed. Akzo Nobel will be focusing on administrative jobs like head office jobs. Thus, there will be more layoffs from finance and global business services positions. Akzo Nobel is already having its existence in different countries around the world.
Thus, there will be an increased scope of development through these techniques. Cost-cutting and laying off is just one type of technique. While the companies use a lot of different techniques to maintain their profitability. Akzo Nobel is also providing training programs, colour concepts, and mixing tools. These programs teach new skills to the employees increasing the profitability and efficiency of the company. There are a lot of things that impact the company’s services.
However, Akzo’s target is to remove several head office employees to make the process simpler. It will help the company remain more connected with the core or base-level works. The company will be laying off the jobs mainly in finance and global business services rather than the base level workers. Stay tuned for more information on our website.